Canadian Solar Infrastructure Fund, Inc.
1-25-1 Nishi-Shinjuku, Shinjuku-ku,
Tokyo 163-0633 Japan
https://www.canadiansolarinfra.com/

Asset Management Reportfor the 5th FP
Yoho National Park, Canada

From J u l y 1 , 2 0 1 9 to December 31 , 2019➢ To Our Investors
Contents
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To Our Investors
Canadian Solar Group
Unique Aspect of the Fund
Highlight of the 4th FP
Management Interview
Portfolio
Portfolio Overview
Sponsor Pipeline
Effort in ESG
Financial Summary
Information for Unitholders
Asset Management Report
Balance Sheet
Statement of Income
Statement of Changes in Unitholders’ Equity
Notes
Statement of Cash Distribution
Statement of Cash Flow

On behalf of the Canadian Solar Infrastructure
Fund, Inc. (hereinafter referred to as “CSIF”), I
would like to express sincere appreciation to all
unitholders for their continued patronage andsupport.
In the previous fiscal year, CSIF acquired one
property with cash on hand on March 1, 2019and one property with using loan and cash on
hand on March 29, in total two properties (total
panel output 3.3 MW, total acquisition price 1.32
billion yen). As a result of the acquisition ofphotovoltaic power generation facilities, as of theend of the previous fiscal period, we have had aportfolio of 20 properties (total panel output
108.9MW, total evaluation price ¥ 50 billion) andbeen the largest listed infrastructure fund.
In the 5th fiscal period, operating revenue was
2,088 million yen, operating income was 696
million yen, and ordinary income was 534 million
yen. During the fiscal period under review, we
acquired an additional property (panel output of
10.8MW, acquisition price of 4.569 billion yen) on
November 29, 2019, using loan and cash on
hand. As a result, as of the end of the fiscal
period under review, the total panel output was
119.8 MW and the total evaluation price was51.4 billion yen, CSIF was continuously thelargest listed infrastructure fund. In the fiscal
period actual power

generation fell short of the forecast at the
beginning of the fiscal period and this resulted inlower sales and profits. In addition, financial
expenses associated with the acquisition of asset
in November 2019 had an additional effect on
ordinary income. However, regarding the
distribution per unit, there is no change from therevised forecast as of November 26, 2019 as
3,650 yen by utilizing distributions in excess ofearnings and the breakdown is profit distributionof 2,310 yen and distribution in excess ofearnings of 1,340 yen.
Expected distribution per unit for the 6th
period (January 1, 2020 to June 30, 2020), the7th period (July 1, 2020 to December 31, 2020)
and the 8th period (January 1, 2021 to June 30,2021) are 3,700 yen, 3,700 yen and 3,700 yen
respectively.
CSIF is determined to maximize unitholder
value by making efforts to achieve efficientinvestment, taking advantage of the vertical
integration model of the Canadian Solar Groupand external growth through the acquisition offacilities mainly from the sponsor pipeline toprovide stable distribution.
In pursuit of these initiatives, we expect thecontinued understanding and support of allunitholders.

Executive Director
Canadian Solar Infrastructure Fund, Inc.
CEO and Representative Director
Canadian Solar Asset Management K.K.

Tetsuya Nakamura

DPU for the 5th FP

JPY 3,650
Forecasted DPU for the 6th FP

Forecasted DPU for the 7th FP

Forecasted DPU for the 8th FP

JPY 3,700

JPY 3,700

JPY 3,700
1➢ Canadian Solar Group➢ Unique Aspects of the FundHistory and Accomplishment of the Group
2001

Founded in Ontario, Canada, as a solar
panel manufacturer

2006

Listed on NASDAQ (CSIQ)
13,000 employees globally as of today

2009Entered into the Japan market for salesof PV modules (by Canadian Solar
Japan K.K.)

2013

Started development business of solar
power plant in Japan (by Canadian Solar
Project K.K.)

2016

Established Canadian Solar AssetManagement K.K., the asset
management of the fund, as 100%
subsidiary of Canadian Solar Project
K.K.

2017

Listed Canadian Solar Infrastructure
Fund, Inc. on Tokyo Stock Exchange.

Advantageous Operation Based on the Vertically-Integrated Model of the Group
Accumulated
shipment of PV
module38GW+

Developed
projects

Prominent knowledge acquired by the Group as the total solution provider of solar power
generation is fully utilized for the operation of CSIF. The uniqueness of the vertically integrated
model of the group is shown as below.

5.5 +The image of the value chain of renewable energy business at Canadian Solar GroupGW
in total globally

Operating
Systems sold in
2018

871

750MW

MW
solar power
plants globally

Installed to

Total

120,000
houses in Japanin total

13.4

GW
projects underconstruction ordevelopment

Canadian Solar Group’s Global Operations

Stable Bank Formation
CSIF has successfully achieved to obtain debt financing from Shinsei Bank, Ltd. (as the mainbank), 3 mega banks and other financial institutions. This is because the credibility andoperational stability of CSIF are healthy enough for them to provide with the debt finances and webelieve additional finance for future acquisitions of new assets can be obtained in stable manner.

Global Offering
CSIF issues about the half of new units in the overseas market through the public offering
process. By having foreign unitholders, Canadian Solar Asset Management K.K., the asset
manager of CSIF, operates the fund in a way such foreign investors can support.in line with theglobal standard of infrastructure fund management. Also, the base of the candidate investors canbe broaden so that the liquidity of the units is heighten and future public offerings are conductedstably.

23➢Financial Highlights➢

Distribution Per Unit for the 5th FP

JPY

Operational Revenue for the 5th FP

3,650

JPY

Operating Income for the 5th FP

JPYManagement Interview

696mln2,088mln

Aim to broaden
the renewable energy
business in order to achieve
the sustainable developmentof the economy

Net Income for the 5th FP

JPY

534mlnForecasted DPU forthe 6th FP

Forecasted DPU for
the 7th FP

Forecasted DPU for
the 8th FP

JPY 3,700

JPY 3,700

JPY 3,700

Executive Director
Canadian Solar Infrastructure Fund, Inc.
CEO and Representative Director
Canadian Solar Asset Management K.K.

Historical Distribution and Forecast

Tetsuya Nakamura

Q1: It seems that there has been a decline in
the pace of acquisition of power plants in 2019
compared to 2017/2018. How do you see theoutlook in the future?
In 2019, we acquired 2 properties in the 4th
period and 1 property in the 5th period from thesponsor pipeline by cash on hand and loans fromfinancial institutions and achieved portfolio
growth. On the other hand, the total acquisition
amount was about 6 billion yen, which was asmaller amount compared to 2017 and 2018 as asingle year. However, the main reason for thedecrease is just the timing of the completion ofindividual sponsor-developed properties, and it
does not mean that the scale of development isshrinking. As of the end of December 2019, thetotal number of assets in operation, construction
and development is 30 properties with the total
panel output of 361.2 MW, which has increased
from the end of the previous fiscal period, and4most of the assets have a FIT price of 32 yen or
more. In addition, even though the FIT price has
fallen, the sponsor continues to develop with avigorous motivation, such as continuing toparticipate in the bidding process.
As the main driver of the growth is acquisitionof solar power generation facilities developed by
Canadian Solar Group, which conducts solar
power generation business from upstream ofmodule (solar panel) manufacturing todownstream of solar power generation facility
development and operation, the growth of CSIF’s
portfolio will be affected by the status ofdevelopment at the sponsors. However, in thisway, the pipeline is enhanced further and thedevelopment stage is in progress. CSIF’s
medium-term goal is to aim for an asset size of
100 billion yen within two years. From the 6th
fiscal period onward, we will continue to focus on
acquiring properties from the sponsor pipeline as
the main source.
5Q2: What is the update and the outlook for the
output curtailment in Kyushu?
In the 5th fiscal period, the ratio of assumed
lost variable rent income due to output
curtailment by Kyushu EPCO to the expected
rent income was 0.17%. It was 0.21% for thesame period last year (3rd period: from July 1,
2018 to December 31,2018) (for reference:
1.54% (4th period)) due to high electricity
demand in the summer season and regulatory
inspection conducted to their nuclear power
plants and there was no output curtailment forthe period from May 13, 2019 to October 12, andthe impact on the result of CSIF was taken as
limited. In the 6th fiscal period, construction ofanti-terrorism facilities is scheduled to be carriedout at the two nuclear power plants in Kyushu
EPCO’s area, and it is expected that theoperation of nuclear power plants will decline andthe output curtailment operation by Kyushu
EPCO will be limited.
To prepare for future situation, CSIF plans toproceed building works for the online curtailment
control by Kyushu EPCO at CS Mashiki-machi
Power Plant, which has the largest panel output
in CSIF’s portfolio and accounts for more than
70% of the nine solar power plants owned by
CSIF in the Kyushu area. With this building work,
it is possible to shift from full-day control to hourly
control centered around peak hours while
maintaining the upper limit of 30 days at thepower plant to which the 30-day rule is applied.
This building works is scheduled in the 6 th fiscal
period.

6

Q3: There seemed to be various discussions
regarding changes in the regulatory system
related to the revised FIT Law such as thebasic charges on the power generation side.
What kind of stance is CSIF taking on these
discussions?
The institutional changes that may have
impacts on the Investment Corporation in the
future are mainly 1) basic charges on the power
generation side and 2) accumulation of funds forremoval costs, and discussions were held by thegoverning ministries, related committees andworking groups. For an overview of these twosystems and the status of discussions, pleaserefer to “Recent System Trends” on page 19 of
the corporate presentation for the 5th fiscal
period on the website of CSIF. Canadian Solar
Asset Management K.K., the asset managementcompany of CSIF, has promptly grasped theprogress of these discussions, while cooperatingwith other solar power generation companies andrenewable energy funds, and petitioning toindustry groups, authorities, various committees
and working group members, etc. to protect theinterests of CSIF. In addition, on the premise thata positive change in the system related torenewable energy will have a positive impact on
the environment surrounding infrastructure
investment corporations including CSIF in the
future, and eventually lead to profits forunitholders, CSIF would like to contribute tothese discussions.
CSIF will continue to maintain and improve theunitholders’ value by keeping track of the trends
in various related systems and by actively
participating in discussions as much as possible.

Q4: CSIF issued the first investment
corporation bond by a listed infrastructure fundin this fiscal period. What is the positioning ofinvestment corporation bonds and what is theoutlook for future issuance?
Investment corporation bonds have been firmly
established as a means of raising funds in JREIT for many years, and there has been many
deals of issuance and firm demands. On theother hand, for infrastructure investment
corporations, there has been investigation on
how much demand there are because it is a newinvestment product for institutional investors, but
in the latter half of 2019, it was found that there
were certain demands. This time, in theenvironment of low interest rates, CSIF decided
the issuance of the investment corporation bonds
because there would be many merits to refinancethe existing floating-interest-rate debt by theissuance of infrastructure investment corporation
bonds with fixed interest rate and a term
exceeding the remaining term of the debt. CSIF,
which holds the largest portfolio among the listed
infrastructure investment corporations, hasrealized unprecedented means to raise funds
and shown the possibility of new method of fundraising, which will further stimulate demand in theentire market.
Investment corporation bonds have the same
aspect as bank loan that they are both debts, butinvestment corporation bonds can also betransferred among investors, and in general, they
are bullet redemptions at maturity without partial
repayment. Since the bond has different
characters from that of bank loans, it ispositioned as a means of financing that CSIF canaccess to the different investor universe who are
specific to investment corporation bonds.
Although it will not be an alternative method forbank loans in the future, it will be necessary totake the bond as flexible finance source towardrefinancing or property acquisitions with watchingmarket interest rate trends as a means of flexible
financing.

Q5: It seems that trading of solar power plantis active in the secondary market. What is
outlook on acquiring properties from thesecondary market?
Since there are no statistics thatcomprehensively supplement purchase and salein the secondary market, it is just an impression
by Canadian Solar Asset Management K.K., theasset management company of CSIF, throughsourcing activities in the secondary market, thatinquiries for candidate power plants are
becoming more active. The sellers are also
diversifying, such as the corporation owning thesolar power plant and the SPC owning by the
project finance method, which are to sell its
equity interest. In addition, the attributes of those
who want to purchase solar power plants are notlimited to domestic and overseas players forinvestment purposes, but to companies that are
active in using renewable energy and renewableenergy companies including solar power
generator also participate in the transaction.
Some rise in transaction prices are observed.
While CSIF has long been focused on theacquisition of properties from the sponsor
pipeline, it has been talking about acquisition
properties from various channels in thesecondary market and has continued to see
many potential deals. Since the final acquisition
decision is definitively based on if there will becontributions to the unitholders’ value increase.
Therefore, though the difficulty of acquisition in
the secondary market has increased in recent
circumstances, CSIF will continue to study
diligently to meet the expectations of unitholders.

7➢

Portfolio

List of Power Plant Assets

Portfolio Highlight
Acquisition
price (yenmillions)

Price (yenmillions)

Investme
nt ratio(％)

Panel output(kW)

Shibushi-shi,
Kagoshima

540

563

1.09

1,224.00

CS Isa-shi PP

Isa-shi, Kagoshima

372

368

0.72

931.77

S-03

CS Kasama-shi PP

Kasama-shi, Ibaraki

907

1,044

2.03

2,127.84

S-04

CS Isa-shi Dai-ni PP

Isa-shi, Kagoshima

778

766

1.49

2,013.99

S-05

CS Yusui-cho PP

Aira-gun, Kagoshima

670

660

1.28

1,749.30

S-06

CS Isa-shi Dai-san PP Isa-shi, Kagoshima

949

943

1.83

2,225.08

S-07

CS Kasama-shi Dai-ni Kasama-shi, Ibaraki
PP

850

889

1.73

2,103.75

S-08

CS Hiji-machi PP

1,029

1,012

1.97

2,574.99

S-09

CS Ashikita-machi PP Ashikita-gun,
Kumamoto

989

991

1.93

2,347.80

S-10

CS Minamishimabara- Shimabara-shi,shi PP (East & West) Nagasaki

1,733

1,800

3.50

3,928.86

S-11

CS Minano-machi PP

Chichibu-gun,
Saitama

1,018

1,137

2.21

2,448.60

S-12

CS Kannami-cho PP

Tagata-gun,Shizuoka

514

571

1.11

1,336.32

S-13

CS Mashiki-machi PP Kamimashiki-gun,
Kumamoto

20,084

21,73242.20

47,692.62

S-14

CS Koriyama-shi PP

Koriyama-shi,
Fukushima

246

262

0.51

636.00S-15

CS Tsuyama-shi PP

Tsuyama-shi,
Okayama

746

796

1.55

1,963.00

S-16

CS Ena-shi PP

Ena-shi, Gifu

757

834

1.62

2,124.20

S-17

CS Daisen-cho PP(A)(B)

Saihaku-gun, Tottori

10,447

10,80920.99

27,302.40

S-18

CS Takayama-shi PP

Takayama-shi, Gifu

326

342

0.66

962.28

S-19

CS Misato-machi PP

Kodama-gun,
Saitama

470

478

0.93

1,082.00

S-20

CS Marumori-machi PP Igu-gun, Miyagi

850

848

1.65

2,194.50

S-21

CS Izu-shi PP

4,569

4,647

9.02

10,776.80

48,84451,498100.00119,746.10# of Projects

Total Acquisition Price

Panel Output of AUM

No.

Project name

21 PV Facilities

JPY 48.85bln

119.8 MWS-01

CS Shibushi-shi PP

S-02(Note) “Total Acquisition Price” is total of the purchase prices based on the sales and purchase agreement for eachproject.

Total Energy Output for the Period
5th FP Actual Energy Output / 5th FP Projected Energy Output =92.51%(MWh)

Projected

Actual

15,00013,062
11,811

11,155

10,85011,326

11,147

10,596

9,619

10,000

8,455

8,372

7,809

Jul. 19

Aug. 19

Sep. 19

Oct. 19

Nov. 19

Dec. 19

FIT Price Range and Regional Allocation
7.5%

6.9% 2.2%
33.8%

12.4%
56.0%
JPY 40/kWh

AUM
Ratio
by FIT
Price

KyushuRegional
Allocation
Ratio

JPY 36/kWh
JPY 32/kWh

Chugoku/Shikoku
Tokai
Kanto
Hokkaido/Tohoku

22.5%

58.7%

Historical Total Solar Panel Output

Historical Total Acquisition Price/Valuation

140

55

120
3.2

100

10.8

30.3
80

2.5

10.8
3.2
30.3

Acquisition price

50

51.49

50.02

48.84

47.09
45

44.28

42.96
40

72.7

72.7

35

20
30

0
@ IPO

8

Valuation price

2.5

60
40

Hayami-gun, Oita

6,689

5,000

0

Location

Acquired Acquired Acquired Acquiredin 2nd FP in 3rd FP in 4th FP in 5th FP

Izu-shi, Shizuoka

35.96

Total

33.86
30.44
@ IPO
2nd FP

31.43
3rd FP

4th FP

5th FP

Total

9

➢

Portfolio Overview*as of the end of the 5th FP

S-21 / CS Izu-shi PP

NEW

S-09 / CS Ashikita-machi PP

S-15 / Tsuyama-shi PP

Panel Output /2,347.80kW
FIT Price /JPY 40/kWh
End of FIT Period /December 10, 2035

S-10 / Minamishimabara-shi PP (East & West)

Panel Output / 10,776.80kW
FIT Price / JPY36/kWh

End of FIT Period / November 29, 2038

S-01 / CS Shibushi-shi PP

S-05 / CS Yusui-cho PP

Panel Output /3,928.86kW
FIT Price /JPY 40/kWh
End of FIT Period
December 24, 2035 (E)January 28, 2036 (W)Panel Output /1,963.00kW
FIT Price /JPY 32/kWh
End of FIT Period /June 29, 2037

S-16 / CS Ena-shi PP
Panel Output /2,124.20kW
FIT Price /JPY 32/kWh
End of FIT Period /September 12, 2037

S-17 / CS Daisen-cho PP (A)/(B)Panel Output /1,224.00kW
FIT Price /JPY 40/kWh
End of FIT Period /September 16, 2034

Panel Output /931.77kW
FIT Price /JPY 40/kWh
End of FIT Period /June 8, 2035

Panel Output /2,127.84kW
FIT Price /JPY 40/kWh
End of FIT Period /June 25, 2035

S-04 / CS Isa-shi Dai-ni PP
Panel Output /2,013.99kW
FIT Price /JPY 36/kWh
End of FIY Period /June 28, 2035

Panel Output /2,448.60kW
FIT Price /JPY 32/kWh
End of FIT Period /December 6, 2036

S-12 / Kannami-cho PP

Panel Output /2,225.08kW
FIT Price /JPY 40/kWh
End of FIT Period /September 15, 2035

S-07 / CS Kasama-shi Dai-ni PP

S-03 / Kasama-shi PP

10Panel Output /1,749.30kW
FIT Price /JPY 36/kWh
End of FIT Period /August 20, 2035

S-06 / CS Isa-shi Dai-san PP

S-02 / CS Isa-shi PP

S-11 / Minano-machi PP

Panel Output /1,336.32kW
FIT Price /JPY 36/kWh
End of FIT Period /March 2, 2037

S-13 / Mashiki-machi PP

Panel Output /2,103.75kW
FIT Price /JPY 40/kWh
End of FIT Period /September 23, 2035

S-08 / CS Hiji-machi PP
Panel Output /2,574.99kW
FIT Price /JPY 36/kWh
End of FIT Period /October 12, 2035

Panel Output /47,692.62kW
FIT Price /JPY 36/kWh
End of FIT Period /June 1, 2037

S-14 / Koriyama-shi PP

Panel Output /20,885.76kW (A)6,416.64kW (B)FIT Price /JPY 40/kWh
End of FIT Period /August 9, 2037

S-18 / CS Takayama-shi PP
Panel Output /962.28kW
FIT Price /JPY 32/kWh
End of FIT Period /October 9, 2037

S-19 / CS Misato-machi PP
Panel Output /1,082.00kW
FIT Price /JPY 32/kWh
End of FIT Period /March 26, 2037

S-20 / CS Marumori-machi PP
Panel Output /636.00kW
FIT Price /JPY 32/kWh
End of FIT Period /September 15, 2036

Panel Output /2,194.50kW
FIT Price /JPY 36/kWh
End of FIT Period /July 12, 2038

11➢

Sponsor Pipeline

Effort in ESG➢

Targeting to achieve JPY100bn in asset size over the medium term by mainly acquiring from thesponsor pipeline.

On August 13, 2019, Canadian Solar Asset Management K.K (“The Company”)., the asset
management company of CSIF, announced that it signed the United Nations Principles of Responsible
Investment (UN PRI). The Company has been actively making ESG efforts in the Canadian Solar Groupand the operation of CSIF, and with the declaration of this signature, it will work on the operation of
CSIF, taking ESG (Environmental, Social and Governance) issues into consideration.
Major ESG-related efforts made thus far in the Canadian Solar Group and the operation of CSIF are
as follows.

Environmental (environmental considerations)⚫

The expected schedule of COD for the sponsor pipeline.

CSIF is contributing to the dissemination ofrenewable energy through its listing on theinfrastructure fund market and by raising funds fromthis market.
CSIF emphasizes environmentally conscious
operation in the surrounding areas, including the useof non-chemical panel cleaning fluid at its power
generation facilities.
The Company avoids excessive land development by
the sponsor, achieving for the installation of power
generation facilities that take advantage of theoriginal land form.

(as of December 31, 2019)⚫

⚫

Social (social contributions)
Sponsor portfolio map
Canadian Solar Project K.K. (“CSP”), the sponsor of
the CSIF, constructed the Daisen Canadian Garden
and donated it to the Daisen-cho Town Government
in commemoration of the completion of S-17 CS
Daisen-cho Power Plant as part of its contribution to
local communities under the concept of an ambitious
attempt for harmony between nature and large-scalesolar power plant. In addition, it repaired the Hima
Jinja Shrine in the same town and donated an incense holder made ofwhite granite to the Shimpukuji Temple.
CSP and the Company offered consolatory donations to the Marumorimachi Town Government. The town was severely hit by Typhoon
Hagibis in October 2019.

⚫

⚫

Governance (corporate governance)⚫
⚫

The Company is working to strengthen governance by taking measures against the conflicts ofinterest and adopting an operation system that secures the third-party nature.
Operations are conducted under an appropriate check function among departments andpersons in charge due to the enhancement of the organizational structure, which has been
advocated since the second half of 2018.

➢
12

13

Financial Summary➢

Financial soundness attributed to fixed interest rate conversion / LTV level is under stable controls
LTV
Fixed-to variable interest rate ratio(as at end of December 2019)(as at end of December 2019)80.48 %

53.74 %

(Note) “Fixed-to-variable interest rate ratio” refers to the ratio of fixed interest rate liabilities to total interest-bearing
liabilities at that time. Variable interest rate liabilities that were converted to fixed interest rate liabilities
through interest rate swap agreements were deemed as fixed interest rate liabilities. “LTV” are calculated
without consumption tax bridge loan.

Information for Unitholders

Unit price performance
Volume (right axis)

Unit price (left axis)

TSE REIT index (left axis)

130,000
125,000
120,000
115,000
110,000
105,000
100,000
95,00090,00085,00080,000

4500
4000
3500
3000
2500
2000
1500
1000
500
0

Debt profile
Status of unitholders

IR calendar
Announcement offinancial results

Fiscal period end

Payment of dividend
Asset management report

June

July

AugustSeptember

OctoberNovember

DecemberJanuary

February

March

April

May

Fiscal period end

Announcement offinancial results

Payment of dividend
Asset management report

Credit rating
Memorandum for unitholders
End of fiscal period

Historical balance of interest-bearing debt
Loan (short-term)

40,00030,00020,00010,000
0
2017

14

2018

2019

2020

Loan (long-term)

2021

2022

Bond

2023

2024

2025

2026

2027

June 30 and December 31

Dividend payment record dateJune 30 and December 31 (payment is to be made within 3months after the date)

Listed financial instruments exchange:

Tokyo Stock Exchange (securities code: 9284)

Unitholders’ meeting:Once a every 2 years

Public announcement newspaper

Nihon Keizai Shimbun (Nikkei)

Administrator of unitholder list etc.

Sumitomo Mitsui Trust Bank, Limited[Contact information]

Izumi 2-8-4, Suginami-ku, Tokyo 168-0063
Sumitomo Mitsui Trust Bank, Limited
TEL: 0120-782-031

15

1.

Overview of Fund Operation(Note 2) Consumption taxes are not included in the operating revenue etc.
(Note 3) Unless otherwise described, the numbers are rounded down and the ratio are rounded up or down.

(1) Historical Operating Result of the FundFiscal Period(Note 4) The calculation methods are as below.
Return on Assets

1st FP

2nd FP

3rd FP

4th FP

5th FP

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Fr. Jul. 1,
2019
To Dec. 31,
2019

Operating Revenue (in JPY mln)

-

2,023

1,785

2,185

2,088

(Rental revenue of renewable energy power

-

2,023

1,785

2,185

2,088

Operating Expense (in JPY mln)

5

1,178

1,140

1,368

1,391

(Expense for rental of renewable energy power

-

1,066

1,035

1,234

1,261

Return on Capital
Capital Ratio
Distribution Payout Ratio
Rental NOI
FFO

plants, out of operating revenue) (in JPY mln)

plants, out of operating expense) (in JPY mln)

(Note 5) For the 1st FP, the actual days for the period is used for annualization. For the 2nd FP, the days for the substantive

Operating Income / Loss (-) (in JPY mln)

(5)

845

644

817

696

Ordinary Income / Loss (-) (in JPY mln)

(49)

331

413

711

534

Net Income / Loss (-) (in JPY mln)

(49)

330

412

710

534

Unitholders’ Capital (net) (Note 6) (in JPY mln)

150

17,315

21,902

21,482

21,3491,500

182,190

231,190

231,190

231,190101

35,841

46,77345,98150,069Total number of units issued (unit)
Total Assets (in JPY mln)
(vs prior FP)(%)

Total Net Assets (in JPY mln)
(vs prior FP)(％)

Interest-bearing Liabilities (in JPY mln)
Net Asset Value per Unit (Base price)(in JPY)-

35,386.1

30.5

(1.7)

8.9

100

17,59622,31522,193

21,883-

17,496.0

26.8

(0.5)

(1.4)

-

18,10324,29723,513

27,973
94,656

67,06596,58396,523

95,996

Total Distribution (in JPY mln)

-

428

832

843

843

Distribution per Unit (in JPY)

-

2,350

3,600

3,650

3,650

(DPU excl. distribution in excess of earnings, in

-

1,542

1,783

3,073

2,310

JPY)
(Distribution in excess of earnings per unit, in JPY)

-

808

1,817

577

1,340

Return on Assets (Note4) (%)(39.3)

1.8

1.0

1.5

1.1

(annualized ratio) (Note5) (%)(105.4)

2.8

2.0

3.1

2.2

Return on Capital (Note4) (%)(39.4)

3.7

2.1

3.2

2.4

(annualized ratio) (Note5) (%)(105.8)

5.6

4.1

6.4

4.8

99.4

49.1

47.7

48.3

43.7

(vs prior FP) (%)-(50.3)

(1.4)

0.6

(4.6)

Distribution Payout Ratio (Note4) (%)

-

76.9

100.0

100.0

100.0

184

Capital Ratio (Note4) (%)[Other Information]
Number of Days for FP (days)

136

244

184

181

Number of Invested Asset as of End of FP

-

15

18

20

21

Depreciation Expenses (in JPY mln)

-

743

713

813

839

CAPEX (in JPY mln)

-

-

27

54

6

Rental NOI (Note4) (in JPY mln)

-

1,700

1,462

1,764

1,665

FFO (Funds from Operation) (Note4) (in JPY mln)
FFO per Unit (Note4) (in JPY)
Interest-bearing Liabilities Ratio (Note4) (%)

(49)

1,074

1,125

1,523

1,374

(32,934)

5,895

4,869

6,591

5,943

-

50.5

51.9

51.1

55.9

(Note 1) Fiscal periods of the fund are six months for January 1 to June 30 and July 1 to December 31 every year. The 1st
FP was from May 18, 2017 to September 30, 2017 and the 2nd FP was from October 1, 2017 to June 30, 2018.
Although the number of days for the 2nd FP was 273 days, the substantive operating period was from October 30,
2017 to June 30, 2018 (244 days).

FFO per unit
Interest-bearing Liabilities
Ratio

Ordinary Income / { (Total Assets at Beginning of FP + Total Assets at End of FP) / 2 } x
100
Net Income / { (Net Assets at Beginning of FP + Net Assets at End of FP) / 2 } x 100
Net Assets at End of FP / Total Assets at End of FP x 100
DPU excl. distribution in excess of earnings / Net Income x 100
Rental Revenue for renewable energy power generation facilities – Rental Expenses forrenewable energy power generation facilities + Depreciation Expenses
Net Income + Depreciation Expenses + Profit from sales of renewable energy power
generation facilities
FFO / The number of total issued units
Interest-bearing Liabilities / Total Assets x 100

operating period (244 days) is used for annualization instead of the actual number of days (273 days).
(Note 6) Deductible amount for unitholders’ capital is deducted from the gross amount of unitholders’ capital.

(2) Overview of the Fiscal Period under Review
a. Brief History of Canadian Solar Infrastructure Fund
Canadian Solar Infrastructure Fund, Inc. (hereinafter referred to as “CSIF”) was established on May 18, 2017with money invested of 150 million yen (1,500 units) by Canadian Solar Asset Management K.K. (hereafterreferred to as the “Asset Manager”) as the founder under the Act on Investment Trusts and Investment
Corporations (Act No. 198 of 1951 including subsequent amendments; hereinafter referred to as the “Investment
Trusts Act”). Registration with the Kanto Local Finance Bureau was completed on June 9, 2017 (registration
number 127, filed with the Director of the Kanto Local Finance Bureau).
CSIF issued additional investment units (177,800 units) through a public offering on October 27, 2017, listed its
investment units on Tokyo Stock Exchange Inc.’s (hereinafter referred to as the “Tokyo Stock Exchange”)
Infrastructure Fund Market on October 30, 2017 (security code: 9284), and issued new investment units (2,890
units) through third-party allotment on November 28, 2017.
In addition, CSIF issued new investment units (46,667 units) through public offering on September 6, 2018 andissued new investment units (2,333 units) through third-party allotment on October 4, 2018. As a result, the total
units issued at the end of the fiscal period under review (as of December 31, 2018) were 231,190 units.
b. Investment Environment
During the fiscal period under review, the Japanese economy remained steady in the first half, partly because
last-minute demand before the consumption tax hike gave a boost to consumer spending and capital investment,
which underpinned domestic demand. In the second half, pushed lower by decline in reaction to the last-minute
rise in demand before the consumption tax increase and impact of Typhoon No. 19 (Hagibis), the industrial
production index, which is strongly linked to the business cycle, also showed larger quarter-over-quarterdecreases, and Japan’s real GDP dropped for the first time in five quarters.
The stock market in Japan was buffeted by the twists and turns of U.S.-China trade tensions. In September,the U.S. announced the delay of increases on existing Chinese tariffs to October 15 and the Japanese stock
market rallied, only to fall again amid concerns over a resurgence in US-China trade hostilities as the US
Government considered a block on all American investments in China. In October, stocks rose sharply on
speculation that the U.S. and China were reaching agreement on some issues in trade talks and on expectationthat Japanese companies’ earnings would bottom out. In November, stocks continued to rise, responding
positively to mounting expectations of a U.S.-China deal and a weakening yen and, after the U.S. reached apartial trade deal with China in trade talks on December 13, the Nikkei average reached its highest level of theyear.
Meanwhile, the Infrastructure Fund Market responded positively to continued quantitative easing in Japan andchanges in the quantitative easing strategies of the U.S. and Europe, with demand among investors aware of therelatively high yields of the Infrastructure Fund Market remaining strong, and the Infrastructure Fund Market

firmed up from July. Through to mid-November, risk appetite increased amid expectation of progress in U.S.China trade talks and rising domestic interest rates led to market downturn. However, the increasing tensions inHong Kong put a halt to the rise in domestic interest rates and the Infrastructure Fund Market recovered. On
December 13, the U.S. and China reached a phase one trade deal in trade talks, directing capital flows towards
Japanese stocks and leading to a temporary slump on the Infrastructure Fund Market. However, since then, theInfrastructure Fund Market has remained steady, partly due to purchases by yield-oriented investors.
In the environment surrounding renewable energy power generation facilities (stipulated in Article 2,
Paragraph 3 of the Act on Special Measures Concerning Procurement of Electricity from Renewable Energy
Sources by Electricity Utilities [Act No. 108 of 2011, including subsequent amendments; hereinafter referred to as
the “Act on Renewal Energy Special Measures”] [excluding those that fall under real estate]; hereinafter referred
to as “renewable energy power generation facilities”) held by CSIF, the output curtailment implemented by
Kyushu Electric Power Co., Inc. (hereinafter referred to as “Kyushu Electric Power”), which requires renewableenergy operators to temporarily suspend power generation through photovoltaic power generation facilities andwind power generation facilities (Note), was resumed for the first time since May 13, 2019 across Kyushu
Mainland from October 13, and was implemented for two days including weekdays in October, 10 days in
November and one day in December. The level of renewable energy control in the fiscal period under review was
small compared to the level of output control during the previous fiscal period, ranging from 2% to 15% of therenewable energy connection capacity. This may reflect the start of regular inspections of the Genkai Nuclear
Power Station Unit No.3 of Kyushu Electric Power on May 13, 2019 and the start of regular inspections of Genkai
Nuclear Power Station Unit No.4 of Kyushu Electric Power on August 16.
Some system changes that will affect power generation using renewable energy power generation facilities
are currently being considered. The main changes being considered are as described below.
Firstly, the introduction of a reserve system to secure the funds for costs of decommissioning solar power
facilities is being considered. The interim report of the Working Group for Securing Funds for Decommissioning
Solar Power Facilities of the Energy Conservation and New Energy Subcommittee of the General Resources
and Energy Investigating Committee of the Ministry of Economy, Trade and Industry published on December 10,
2019 states that a scheme requiring all commercial solar power of 10kW or more certified under the Act on
Renewable Energy Special Measures to reserve an amount calculated based on the decommissioning costs
assumed in the calculation of procurement prices over the last 10 years of the procurement period will start froman appropriate timing by July 2022. Projects will be required in general to secure the funds through an “external
reserve method," where the funds for decommissioning costs are to be deducted from income and reserved by athird-party organization, but projects deemed capable of assuming responsibility for long-term stable power
generation will be allowed, if certain requirements are satisfied, to opt for an "internal reserve method," where
they reserve such funds by themselves.
Next, the introduction of so-called power producer-side base charges is being considered. Power producerside base charges is a system for ensuring that the producer side, which uses power grids, also bears a portionof the transmission and distribution-related expenses, previously borne by retail electricity business operators(the demand side) through wheeling charges, and the System Design Working Group of the Electricity and Gas
Market Surveillance Commission is currently examining the detailed design of the system, aiming for introduction
in FY2023. Alongside the introduction of power producer-side base charges, the adoption of relief measures i.e.
raising the cap on the amount to be borne by general electricity transmission and distribution business operators(general fees) when connecting renewable energy-sourced facilities to the grid and reducing initial costs of power
producers are also being considered. Since power producer-side base charges will also be imposed on power
producers who sell electricity under the Feed-in Tariff scheme (hereinafter referred to as “FIT scheme”) for
renewable energy based on the Act on Renewal Energy Special Measures (hereinafter referred to as “FIT power
producers”), the Procurement Price Calculation Committee is currently considering relief measures for FIT power
producers and the 53rd meeting of the Procurement Price Calculation Committee held on December 27, 2019indicated that it will introduce additional electricity sales prices separate from procurement prices. However, therelief measures may not be applied at all to commercial solar power projects that had obtained a FIT approval
during the profit incentive period (in other words, projects with a procurement price of between ¥29 per kwH + tax
and ¥40 per kwH + tax) and long-term non-operational projects. What is more, when it comes to photovoltaic
power and wind power which have reduced capacity factors, although the abovementioned relief measures areunlikely to be commensurate with the additional costs resulting from introduction of power producer-side basecharges, there is no telling whether additional relief measures through FIT scheme surcharges will be
implemented to address this.
In addition, a fundamental revision of the Act on Renewable Energy Special Measures, which, in accordancewith Article 3 of the Supplementary Provisions of the Act on Renewable Energy Special Measures, is supposed
to be completed by March 31, 2021, is also being discussed. The draft interim report of the Subcommittee to
Reform System for Using Renewable Energy as Main Power Source (hereinafter referred to as the “Interim
Report of the Subcommittee to Reform System for Using Renewable Energy as Main Power Source”) of theStrategic Policy Committee of the General Resources and Energy Investigating Committee published on
December 26, 2019 discussed the development of a support system that fits in with the characteristics of powersources, promotion of community-based renewables, the formation of a next-generation power network for using
renewable energy as a main power source and other points.
Especially in regard to the development of a support system that fits in with the characteristics of powersources, the report divided power sources into competitive power sources (large-scale commercial photovoltaic
power generation, wind power generation, etc.) and community-based power sources (small-scale power
generation) and then, with respect to competitive power sources, proposed accelerating costs reductions throughan auction system, shifting from the FIT scheme to the FIP scheme, and integrating renewable energy with thepower market. When renewable energy power producers sell the electricity they have produced on the wholesale
electricity market or in negotiated bilateral electricity transactions (OTC trading), the FIP scheme adds a premium(fixed for a given period, sliding in the long term) i.e. the difference between the basic tariff (FIP price) (fixed) anda tariff based on market prices (reference tariff) (fixed for a given period, sliding in the long term) on top. The
Interim Report of the Subcommittee to Reform System for Using Renewable Energy as Main Power Source
proposed the creation of a system that would ensure both investment incentive (foreseeability of investment
return) and power generation activity based on an awareness of market prices. With regard to market integration,
the report also proposes examination of incentives for renewable energy power producers to prevent any
imbalance and the adoption of a framework under which renewable energy power producers will sell
environmental value themselves through OTC trading or auction.
However, the photovoltaic power generation facilities, etc. owned by CSIF have already started sellingelectricity under the FIT scheme and, under transitional measures, these facilities, etc. are likely to be able tocontinue selling electricity based on current procurement prices under the existing FIT scheme framework.
(Note) “Photovoltaic power generation facilities” shall refer to renewable energy power generation facilities thatgenerate power by using sunlight, among other sources, as energy, while “Wind power generation facilities”
refer to renewable power generation facilities that generate power by using wind power, among other sources,as energy. The same shall apply hereunder.

c. Management Performance
During the previous fiscal period, CSIF acquired one facility on March 1, 2019 with cash on hand and anotherfacility on March 29, 2019 using borrowings and cash on hand, or a total of two photovoltaic power generation
facilities, etc. (Note 3) (a total panel output (Note 1) of 3.3MW and a total acquisition price (Note 2) of ¥1,320
million). As a result, CSIF held a portfolio consisting of 20 facilities (a total panel output of 108.9MW and a total
price (Note 4) of ¥50,000 million) as of the end of the fiscal period under review, making CSIF the largest
operator among listed infrastructure funds in terms of assets scale.
During the fiscal period under review, CSIF acquired an additional facility, etc. on November 29, 2019 (a total
panel output of 10.8MW and a total acquisition price of ¥4,569 million (Note 2)) using borrowings and cash on
hand. As a result, CSIF held a portfolio consisting of a total panel output of 119.8MW and a total price of ¥51,400
million as of the end of the fiscal period under review and continued to be the largest operator among listed
infrastructure funds.
(Note 1) “Panel output” shall mean output calculated by multiplying rated output per solar cell module (meaning the
maximum output stated in specifications of solar cell module) used in each solar energy facility by the total
number of panels. The same shall apply hereunder.
(Note 2) “Acquisition price” shall mean the sale and purchase price (excluding outsourcing service fees and otheracquisition expenses related to the acquisition of assets, property-related taxes, urban planning taxes,
consumption taxes and other fees and charges) described in the sale and purchase agreement pertaining to each
asset acquired. It shall be rounded down to the nearest one million yen. The same shall apply hereunder.

(Note 3) “Renewable energy power generation facilities, etc.” shall collectively refer to renewable energy power generation
facilities as well as real estate and the right of lease (including the right of sublease) of real estate or the surface
right (hereinafter referred to as “Site, etc.”) to install, maintain and operate the renewable energy power
generation facilities. In addition, “photovoltaic power generation facilities, etc.” shall collectively refer tophotovoltaic power generation facilities (of renewable energy power generation facilities, photovoltaic power
generation facilities shall specifically refer to renewable energy power generation facilities that generate powerusing solar light as the source of energy; the same shall apply hereunder) as well as real estate and the right oflease (including the right of sublease) of real estate or the surface right to install, maintain and operate
photovoltaic power generation facilities. The same shall apply hereunder.
(Note 4) “Price” shall mean the intermediate value calculated by CSIF using the appraisal value of each power plant as ofJune 30, 2019 for the previous fiscal period and as of December 31, 2019 for the fiscal period under review asstated in valuation reports obtained from PricewaterhouseCoopers Sustainability LLC or Ernst & Young
Transaction Advisory Services Co., Ltd.. The same shall apply hereunder.

d. Overview of Financing
In the fiscal period under review, CSIF undertook the issuance of ¥1,100 million yen of private investment
corporation bonds and the borrowing of funds amounting to a total of ¥4,800 million in November 2019. On the other
hand, CSIF made a repayment of bank loan before maturity of ¥820 million yen and a contractual repayment at theend of the fiscal period under review, and the amount of borrowings as of the end of the fiscal period under review
came to ¥26,873 million. Consequently, the ratio of interest-bearing debt to total assets (ratio of interest-bearing debt
to total assets at the end of fiscal period) was 55.9%.
On September 13, 2019, CSIF was awarded credit rating by the credit rating agency shown below and wasawarded a bond rating for its First Series of Unsecured Investment Corporation Bonds on October 29, 2019.

In addition to a cash distribution within the range of profit, CSIF intends to make distributions in excess ofearnings for each fiscal period on a continuous basis in order to realize this policy.
In developing its performance forecast (including any revisions thereof) for each fiscal period, in the case where
NCF calculated from actual energy output in a fiscal period (hereinafter referred to as “actual NCF”; CSIF shallincorporate the total amount of NCF remaining after deducting distributions for the preceding fiscal periods incalculating actual NCF) exceeds NCF projected for the fiscal period (hereinafter referred to as “projected NCF”; CSIF
shall incorporate the total amount of NCF remaining after deducting distributions for the preceding fiscal periods incalculating projected NCF) on the basis of an energy output value projected by professional specialists (P50) whichforms the foundation for the calculation of rents with regard to the renewable energy power generation facilities,
CSIF intends to limit the cash distribution to the amount of projected NCF multiplied by the payout ratio for said fiscal
period.
On the other hand, in the case where actual NCF is equal to or below projected NCF, CSIF intends to make acash distribution for the fiscal period at the amount of actual NCF multiplied by the payout ratio.
Based on the above policy, CSIF determined to make a distribution for the fiscal period under review of¥843,843,500, equivalent to 82.0% of projected NCF for the period (¥1,029,345,000). As a result, distribution inexcess of earnings is ¥309,794,600, after deducting dividends for the period of ¥534,048,900. Dividend perinvestment unit is ¥3,650 for the fiscal period under review.

(3) Summary of Public Offering etc.

Date

Event

CSIF’s Credit Rating and Bond Rating
Rating Agency

Agency, Ltd. (JCR)

ChangeRating Subject

RatingRating Outlook

Long-term Issuer Rating

A-

StableThe 1 Unsecured Investment Corporation Bond

A--

Japan Credit Ratingst

Total number of investment
units issued and outstanding(units)e. Overview of Business Performance and Distributions
As a result of the management described above, the business performance in the fiscal period under review
recorded operating revenue of ¥2,088 million, operating income of ¥696 million (mainly due to the impact of
unseasonable weather), ordinary income of ¥534 million and net income of ¥534 million.
Pursuant to the cash distribution policy set forth in Article 47, Paragraph 1 of its Articles of Incorporation, CSIF
shall distribute an amount in excess of the amount equivalent to 90% of its distributable earnings as defined in Article
67-15 of the Act on Special Measures Concerning Taxation.
In addition, distributions in excess of earnings are calculated on the premise that such distributions will generally
be made in accordance with the cash distribution policy prescribed in CSIF’s Articles of Incorporation and the AssetManager’s asset management guidelines formulated as part of its internal regulations.
CSIF intends to make cash distributions to its unitholders for each fiscal period from free cash flow (hereinafterreferred to as “FCF”) generated by its renewable energy power generation facilities, in amounts determined in thefollowing manner. The amount available for distribution shall be calculated by multiplying FCF, that is net cash flow
(hereinafter referred to as “NCF”; CSIF shall incorporate the total amount of NCF remaining after deducting
distributions for the preceding fiscal periods in calculating NCF) to be vested to equity investors after deducting FCF
payable to debt investors, by a certain ratio (hereinafter referred to as “payout ratio”; The payout ratio for the 5th
fiscal period is 82.0%.) determined by CSIF in light of the amount of NCF for each fiscal period.
At the same time, CSIF intends to maintain a stable level of distributions for the time being. In determining thepayout ratio described above, CSIF will consider the forecast NCF for each fiscal period to realize that level of
distributions.

Establishment upon
private placement
Capital increase by public
October 27, 2017
offering
Capital increase by thirdNovember 28, 2017
party allotment
Capital increase by public
September 5, 2018
offering
Cash distribution in
September 14, 2018 excess of earnings (refundof investment)
Capital increase by thirdOctober 4, 2018
party allotment
Cash distribution in excess
March 14, 2019of earnings (refund ofinvestment)
Cash distribution in excess
September 17, 2019of earnings (refund ofinvestment)
May 18, 2017

Balance

Total amount of unitholders'
capital(Note 1) (million yen)
ChangeRemarks

Balance

1,500

1,500

150

150

(Note 2)

177,800

179,300

16,891

17,041(Note 3)2,890

182,190274

17,315(Note 4)

46,667

228,857

4,509

21,824(Note 5)-

228,857(147)

21,677(Note 6)2,333

231,190

225

21,902(Note 7)-

231,190(420)

21,482(Note 8)-231,190(133)

21,349(Note 9)(Note 1) The amount of deduction of total amount of unitholders’ capital is deducted.
(Note 2) In the establishment of the CSIF, the investment units were issued at an issue price of ¥100,000 per unit. The
party who applied for subscription of investment units upon the establishment is Canadian Solar Projects K.K.
(Note 3) New investment units were issued by public offering for the purpose of raising funds for the acquisition of
specified assets at an issue price of ¥100,000 (issue value of ¥95,000) per unit.
(Note 4) New investment units were issued to Mizuho Securities Co., Ltd. by third-party allotment at an issue value of¥95,000 per unit for the purpose of appropriation to a part of the funds for acquisition of specified assets or part of
repayment of borrowings.
(Note 5) New investment units were issued by public offering for the purpose of raising funds for the acquisition of
specified assets at an issue price of ¥102,180 (issue value of ¥96,625) per unit.
(Note 6) CSIF decided, at a meeting of its Board of Directors held on August 14, 2018, to pay a cash distribution in excess

of earnings (refund of investment) in an amount of ¥808 per unit for the second fiscal period (ended June 30,2018), and began to pay it from September 14, 2018.
(Note 7) New investment units were issued to Mizuho Securities Co., Ltd. by third-party allotment at an issue price of¥96,625 per unit for the purpose of appropriation to a part of the funds for acquisition of specified assets or a partof the funds for repayment of borrowings.
(Note 8) CSIF decided, at a meeting of its Board of Directors held on February 15, 2019, to pay a cash distribution inexcess of earnings (refund of investment) in an amount of ¥1,817 per unit for the third fiscal period (ended
December 31, 2018), and began to pay it from March 14, 2019.
(Note 9) CSIF decided, at a meeting of its Board of Directors held on August 13, 2019, to pay a cash distribution in excessof earnings (refund of investment) in an amount of ¥577 per unit for the third fiscal period (ended June 30, 2019),
and began to pay it from September 17, 2019.

(4) Historical Distributions
Based on the unappropriated earnings of JPY 534mln for the 5th FP, after a rounding down for the amount below
JPY 1mln, JPY 534mln is the distribution for profit. Together with JPY 309mln of distribution in excess of earnings,
as the result, JPY 3,650 is the DPU for the period.
1st FP

2nd FP

3rd FP

4th FP

5th FP

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Fr. Jul. 1,
2019
To Dec. 31,
2019(49,402)

281,047

412,298

710,506

534,065(49,402)

110

86

59

16

Total Distribution (in JPY thousand)-

428,146

832,284

843,843

843,843(DPU, in JPY)l Period

Unappropriated Earnings or Undisposed
Losses (in JPY thousand)
Retained Earnings (in JPY thousand)(-)(2,350)(3,600)(3,650)(3,650)Distribution for Profit (in JPY thousand)-

280,936412,211

710,446

534,048(Distribution for Profit per Unit, in JPY)(-)

(1,542)(1,783)(3,073)(2,310)-147,209

420,072

133,396309,794

(-)

(808)

(1,817)(577)(1,340)

-

-

-

-

-

(-)

(-)

(-)

(-)

(-)

-

147,209

420,072

133,396309,794

(-)

(808)

(1,817)(577)(1,340)Distribution in Excess of Earnings (in JPY
thousand)(Distribution in Excess of Earnings per
Unit, in JPY)
Distribution from Allowance for Adjustment for
Temporary Difference out of Distribution in
Excess of Earnings (in JPY thousand)(Distribution from Allowance for Adjustment
for Temporary Difference per Unit out ofDistribution in Excess of Earnings per Unit, in
JPY)
Distribution as Redemption of Capital basedon Tax Law (in JPY thousand)(Distribution as Redemption of Capital basedon Tax Law, in JPY)

(Note) The fund makes distribution in excess of earnings every FP based on its article 47.2. Based on this policy, JPY
309mln which is 36.9% of the depreciation expenses, JPY 840mln, is to be distributed as the distribution in excessof earnings. As a result, JPY 3,650 is DPU for the 5th FP.

(5) Operational Policy and Agendas in the Futurea. Outlook for the Future Management
Although Japan’s real GDP turned negative in the October-December 2019 quarter, the economy is expected
to grow slightly by an annualized 0.4% in the January-March 2020 quarter, when the impact of the reactionary

decline and natural disasters weakens. Growth will then accelerate through the July-September quarter when theTokyo Olympics are held. It has been pointed out that, after the Olympics, from the second half of FY2020
through the first half of FY2021, the economy may start to stagnate again as the positive economic impact of the
Olympics wears off and this is a point that requires attention. U.S. economic and monetary policy is expected tocontinue to be heavily influenced by President Trump’s trade policies especially his policy on trade between the
US and China. However, consumer spending will continue to drive growth and the nation’s GDP growth isexpected to slow down gradually. Meanwhile, the eurozone faces a long period of weak economic growth.
Although downward pressure from foreign demand and inventory adjustments is expected to ease, a slowdown
in capital spending and consumer spending is forecast. The political situation in major economies will remain
turbulent in 2020, thwarting international cooperation, and this is likely to be a factor that hampers economic
activity.
With respect to the environment surrounding photovoltaic power generation facilities that are included inrenewable energy power generation facilities, as stated in “(2). Overview of the Fiscal Period under Review b.
Investment Environment” above, the output curtailment that requires renewable energy operators to temporarilysuspend power generation through photovoltaic power generation facilities, etc. was resumed in areas under thejurisdiction of Kyushu Electric Power from October 2019. However, if renewable energy adoption continues toexpand in the future, output curtailment may also be implemented in other regions besides the Kyushu region
such as the Tohoku region and the Chugoku region.
Meanwhile, Kyushu Electric Power has announced plans to shut down No.1 and 2 reactors at the Sendai
Nuclear Power Plant (Satsumasendai, Kagoshima Prefecture) from March 2020 and to phase them back into
operation from December. According to the announcement, Kyushu Electric Power will move forward the regularinspection of the No. 1 reactor planned for November 2020, shutting down the reactor for around 9 months fromMarch 16, 2020 to December 26, 2020. It will also shut down the No. 2 reactor for around 8 months from May 20,
2020 to January 26, 2021, which includes the regular inspection that was planned from late April 2021.
The reserve system to secure the funds for costs of decommissioning solar power facilities is supposed to startfrom an appropriate timing by July 2022, with any legislative relief measures taking shape in the course of thefundamental revision of the Act on Renewable Energy Special Measures which is supposed to be completed byMarch 31, 2021.
As for the introduction of power producer-side base charges, the government will apparently examine thedetailed design including the details necessary for system development in FY2019, spend around two years fromFY2020 developing the system, complete the tariff revision process (examination of wheeling charges, revision ofexisting bilateral contracts between power producers and retailers) in FY2022 and then aims to introduce power
producer-side base charges in FY2023. However, the timing of introduction may be revised where necessary foralignment with progress of related system reforms, including the Agency for Natural Resources and Energy’s
wheeling charge system reforms and other revisions and discussions, and the introduction timing is not definite.
In accordance with Article 3 of the Supplementary Provisions of the Act on Renewable Energy Special
Measures, the fundamental revision of the Act on Renewable Energy Special Measures is supposed to becompleted by March 31, 2021, and a bill including the draft amendments to the Act on Renewable Energy
Special Measures is expected to be submitted to the Diet during 2020.
b. Future Management Policy(i) External Growth Strategy
The Canadian Solar Group (Note 2), which is the Sponsor Group (Note 1) of CSIF, adopts the vertical
integration model that has developed mainly in the photovoltaic power generation market in Europe and America
and applies this model in the global market, including Japan. CSIF considers that mutual cooperation between
the Group and CSIF (engaging in investment in and management of photovoltaic power generation facilities)
through the Sponsor Group based on the vertical integration model for the construction of the value chain withthe aim of creating mutual value should lead to the enhancement of value for unitholders.
Specifically, CSIF intends to increase assets by utilizing the preferential trading negotiation right granted by theSponsor Group and acquiring photovoltaic power generation facilities, etc. whose value is high from the pipelinesof the Sponsor. In addition, CSIF will aim to acquire photovoltaic power generation facilities, etc. held by persons
other than the Sponsor Group by utilizing the Sponsor Group’s networks of brokers and power producers.
(Note 1) The “Sponsor Group” collectively refer to (i) the Sponsor (Canadian Solar Projects K.K.), (ii) special purpose

companies (they may be hereinafter referred to as “SPCs”), partnerships or other funds with which the Sponsor
has entered into the asset management service agreement, (iii) Canadian Solar O&M Japan K.K. (it may behereinafter referred to as “CSOM Japan”) and (iv) special purpose companies, partnerships or other funds in(2) Major Unitholders List
Major unitholders as of December 31, 2019 are as follows.

which the Sponsor or its subsidiary own a majority interest. The same will apply below.

Name

The Number of Units Held

Ratio vs Total Number of(Note 2) The “Canadian Solar Group” refers to the consolidated corporate group with Canadian Solar Inc. (headquarteredin Canada) at the top to which the Sponsor (Canadian Solar Projects K.K.) belongs.

(ii) Internal Growth Strategy
CSIF will contract out O&M (Note) to CSOM Japan, which is a wholly owned subsidiary of the Sponsor andprovides O&M services in Japan, in principle, for the availability of homogeneous O&M services to the extent that
CSIF considers essential. CSIF aims to thereby reduce the operational risk and operating costs by utilizing theservices of CSOM Japan and placing a blanket order, respectively.
By making the most of the strong operation and management abilities realized by utilizing the global monitoring
platform of the Sponsor Group in the early discovery and repair of failures of power generation facilities, CSIF will
aim to reduce the loss of power generation. In addition, CSIF will implement the appropriate repair and facilities
replacement of assets under management to maintain and enhance the value of assets from the medium- tolong-term perspective, thereby securing stable revenue in the medium to long term.
(Note) “O&M” is an abbreviation of Operation & Maintenance. The same will apply below.

Units Issued (%)

Canadian Solar Project K.K.

33,89514.66

SSBTC CLIENT OMNIBUS ACCOUNT

11,944

5.16

The Bank of Fukuoka, Ltd.

3,430

1.48

GOLDMAN SACHS INTERNATIONAL

3,165

1.36

Individual

3,042

1.31

CITIBANK INTERNATIONAL PLC AS TRUSTEE FOR STANDARD LIFE

2,437

1.05

THE BANK OF NEW YORK

2,420

1.04

Individual

2,041

0.88

Individual

2,020

0.87

Individual

2,000

0.86

66,39428.71

WEALTH PHOENIX FUND

Total

(Note) The ratio is rounded down to two decimal places.

(iii) Financial Strategy
To secure stable revenue and ensure the growth of the managed assets of CSIF, CSIF will consider financing
by public offering, borrowings and other means in the acquisition of new assets, while watching changes in thefinancing environment closely.

(3) Summary of Executives
a. Executive Director, Supervisory Director and Accounting Auditor
Position(6) Subsequent Event

Executive Director(Note 2)

Not applicable.

Name

Tetsuya Nakamura

Concurrent Post
Representative director of Canadian Solar AssetManagement K.K.

Compensation(in JPY thousand)-

Mazars WB Audit Corporation (Corporate representative)

2.

Overview of Fund Corporation

Takashi Handa(1) Summary of Invested Capital
nd

rd

th

1 FP

2

FP

3 FP

4 FP

5 FP

Jun. 30,
2018

Dec. 31,2018

Jun. 30,
2019

Dec. 31,2019

10,000,000

10,000,000

10,000,000

10,000,000

10,000,000

Total Number of Units Issued

1,500

182,190

231,190

231,190

231,190

Unitholders’ Capital (net) (Note) (in JPY mln)

150

17,315

21,902

21,482

21,349

1

5,753

9,815

11,143

11,400

The Number of Units Allowed for Issuance

The Number of Unitholders

2,400

Shin Saiwai Law Office (Partner, Attorney at law)th

Sep. 30,
2017

Fiscal Period

Mazars FAS K.K. (Representative Director)
Zuken Inc. (Audit and Supervisory board member)Supervisory DirectorstMazars Sarl (Partner)

Eriko Ishii (Note 3)

Itochu REIT Management Co., Ltd. (Member of thecompliance committee)

Accounting Auditor(Note)

Grant Thornton Taiyo
LLC

-

8,500

The executive directors and the supervisory director don’t hold the fund’s unit. Although the supervisory directors
may be in a position of executive officer of any corporations other than stated above, there is no conflict ofinterest related to the fund.

(Note) Deductible amount for unitholders’ capital is deducted from the gross amount of unitholders’ capital.

b.

The policy on decision of removal / not-to-reappoint of accounting auditor
Decision of removal is made based on Investment Trust Law and not-to-reappoint is made by unitholders’meeting.

(4) Asset Manager, Asset Custodian and Administrator
Asset manager, asset custodian and administrator as of December 31, 2019 are as follows.
Delegated Position(2) Major Assets List
The summary of the top 10 assets as of December 31, 2019 is as follows.
Rental Revenue Earned by

Name
Name of Infrastructure Asset

Infrastructure AssetBook Value(in JPY mln)

Asset Manager

Canadian Solar Asset Management K.K.

Asset Custodian

Sumitomo Mitsui Trust Bank, Ltd.

CS Mashiki-machi Power Plant

921,249

18,820Administrator (Institutional Operation)

Sumitomo Mitsui Trust Bank, Ltd.

CS Daisen-cho Power Plant (A) and (B)507,780

10,023Administrator (Custodian of List of Unitholders)

Sumitomo Mitsui Trust Bank, Ltd.

CS Izu-shi Power Plant

26,582

4,613

Administrator (Accounting)

Ernst & Young Tax Co.

CS Minamishimabara-shi Power Plant

86,303

1,608

Administrator (Administration of Bond)

Mizuho Bank, Ltd.

CS Minano-machi Power Plant

33,410991

CS Hiji-machi Power Plant

48,426951

CS Ashikita-machi Power Plant

48,484917

CS Isa-shi Dai-san Power Plant

46,579882

CS Kasama-shi Power Plant

40,242860

CS Marumori-machi Power Plant

35,025843

1,794,080

40,508(in JPY thousand)Overview of Assets under Management

Total(1) Composition of Assets and Regional Diversification
4th FP
As of Jun. 30, 2019
Total Asset-UnderManagement (AUM)(‘000yen)(Note 2)

Hokkaido/Tohoku
Kanto% of total AUM(Note 3)

1,040,655

2.3

1,019,428

2.0

2,461,223

5.4

2,405,428

4.8

Tokai

1,418,596

3.1

5,761,989

11.5

Chugoku/Shikoku

10,484,457

22.8

10,257,651

20.5

Kyushu22,292,578

48.5

21,806,516

43.6

37,697,511

82.0

41,251,014

82.4

Hokkaido/Tohoku

48,9700.1

48,9700.1

Structures

Kanto

647,430

1.4

648,591

1.3

Machinery andTokai

63,3090.1

63,3090.1

Chugoku/Shikoku

Summary
Accumulated
Depreciation /Type of Asset

Beginning

Increase

Decrease

EndingAmortization

Balancein the FP

in the FP

Balance

For

Net
Endingthis
FP

Property

Equipment

835

205

-

1,040

63

18

977

(Note)

38,6104,116-

42,726

3,002

810

39,724(Note)

521

71

-

592

43

10

548

(Note)(Note)

1.1

523,905

1.0

6.9

3,184,875

6.4

4,466,771

9.7

4,469,653

8.9

Hokkaido/Tohoku

17,9240.0

17,924

0.0

Land

4,466

2

-

4,469

-

-

4,469

Kanto

59,1970.1

59,1970.1

Total

44,433

4,396-

48,8293,109

839

45,720Tokai

41,4230.1

282,151

0.6

Chugoku/Shikoku

3,415

0.0

3,415

0.0

512

240

-

753

-

-

753

390,4500.8

390,4500.8

512,4111.1

753,139

1.5

3

-

-

3

1

0

2

Hokkaido/Tohoku

1,107,550

2.4

1,086,322

2.2

516

240

-

757

1

0

755

Kanto

3,167,851

6.9

3,113,218

6.2

KyushuSubtotalTokai

1,523,330

3.3

6,107,450

12.2

Chugoku/Shikoku

11,010,058

23.9

10,784,972

21.5

Kyushu25,867,904

56.3

25,381,842

50.7

42,676,695

92.8

46,473,806

92.8

Solar energy facility etc. total

42,676,695

92.8

46,473,806

92.8

Saving/other assets

3,304,406

7.2

3,595,994

7.2

Asset total (2)45,981,101

100.0

50,069,801

1000.0Subtotal

Abstract

Balance522,185

Subtotal

Solar energy
facility etc.

(i)

3,184,875

KyushuLand leasea. Details of Power Generation Facilities% of total AUM(Note 3)

Region (Note 1)

SubtotalLand(3) Details of Assets

Total Asset-UnderManagement (AUM)(‘000yen)(Note 2)

Type of asset

Solar energy
facility

5th FP
As of Dec. 31, 2019

andEquipment

Tools,
Furniture and
Fixtures

LeaseholdIntangible

RightsAssetsSoftware
Total(Note) The increases for the 5th FP are related to the acquisition of the power plants on November 29, 2019.

(Note)

(ii)Details of Power Generation Facilities
Site Area(m2) (Note1)

PPA
PurchasePrice(yen/kwh)(Note 2)

Certification Date
(Note 3)

FIT Term End(Note 4)

February 26, 2013

September 16,
2034

S-18

Solar Plant
etc.

CS Takayama-shi
Power Plant

S-19

Solar Plant
etc.

CS Misato-machi
Power Plant

S-20

Solar Plant
etc.

CS Marumori-machi
Power Plant

S-21

Solar Plant
etc.

CS Izu-shi Power
Plant

Saihaku-gun,Tottori (B)Shingumachi,
Takayama-shi,
Gifu
Misato-machi,
Kodama-gun,
SaitamaMarumorimachi, Igugun, Miyagi
Ono AzaOkubo, Izushi, Shizuoka

16,278(Note 5)32

January 30, 2015

October 9, 2037

25,31532

January 6, 2015

March 26, 2037

65,306(Note 8)36

February 28, 2014

July 12, 2038

337,160

36

March 31, 2014

November 29,
2038

Asset #

Category

Project Name

Location

S-01

Solar Plant
etc.

CS Shibushi-shi
Power Plant

Shibushi-shi,
Kagoshima

19,861

S-02

Solar Plant
etc.

CS Isa-shi Power
Plant

Isa-shi,Kagoshima

22,22340

February 26, 2013

June 8, 2035

S-03

Solar Plant
etc.

CS Kasama-shi
Power Plant

Kasama-shi,
Ibaraki

42,666(Note 5)40

January 25, 2013

June 25, 2035

S-04

Solar Plant
etc.

CS Isa-shi Dai-niPower Plant

Isa-shi,Kagoshima

31,81836

October 2, 2013

June 28, 2035

S-05

Solar Plant
etc.

CS Yusui-cho
Power Plant

Aira-gun,Kagoshima

25,27436

March 14, 2014

August 20, 2035

S-06

Solar Plant
etc.

CS Isa-shi Dai-sanPower Plant

Isa-shi,Kagoshima

40,73640

February 26, 2013

September 15,
2035(Note 4) “FIT Term End” denotes the date 20-year FIT term ends for each power plant.

S-07

Solar Plant
etc.

CS Kasama-shi
Dai-ni Power Plant

Kasama-shi,
Ibaraki

53,27540

January 25, 2013

September 23,
2035(Note 6) The number for the site area is only for the power plant’s and self-employed line’s land ownership rights and

S-08

Solar Plant
etc.

CS Hiji-machi
Power Plant

Hayami-gun,Oita

30,24636

July 16, 2013

October 12, 2035

S-09

Solar Plant
etc.

CS Ashikita-machi
Power Plant

Ashikita-gun,
Kumamoto

40

February 26, 2013

December 10,
2035

S-10

Solar Plant
etc.

CS
Minamishimabarashi Power Plant(East) / CS
Minamishimabarashi Power Plant(West)

Minamishimabara-shi,Nagasaki40

February 26, 2013
(East)
February 26, 2013
(West)

December 24,
2035 (East)
January 28, 2036
(West)

S-11

Solar Plant
etc.

CS Minano-machi
Power Plant

Chichibu-gun,
Saitama32

December 6,
December 11, 2014
2036

S-12

Solar Plant
etc.

CS Kannami-cho
Power Plant

S-13

Solar Plant
etc.

CS Mashiki-machi
Power Plant

Solar Plant
etc.
Solar Plant
etc.

CS Koriyama-shi
Power Plan
CS Tsuyama-shi
Power Plant

Tagata-gun,Shizuoka
Kamimashikigun,
Kumamoto
Koriyama-shi,
Fukushima
Tsuyama-shi,
Okayama
Aza Ochise,
Kusumi,
Osashimacho, Ena-shi,
Gifu
Aza Magoese,
Toyofusa,
Daisen-cho,
Saihaku-gun,Tottori (A)Aza
Kamikawara,
Toyofusa,
Daisen-cho,

S-14
S-15

S-16

S-17

Solar Plant
etc.

Solar Plant
etc.

CS Ena-shi Power
Plant

CS Daisen-choPower Plant (A) and(B)

40(Note 1) The numbers for “Site Area” are not equal to the real situation but based on the ground register.
(Note 2) “PPA Purchase Price” are the FIT price for each power plant (excluding consumption tax amount).
(Note 3) “Certification Date” denotes the date each power plant is certified under the article 6.1 of Revision Renewable
Energy Special Measures Law. Each power plant is deemed being certified on April 1, 2017 based on the article
9.3 of Revision Renewable Energy Special Measures Law.

45,74056,06644,904
41,33936

March 31, 2014

(Note 5) The number for the site area is only for the power plant’s land ownership rights and doesn’t include easement.
doesn’t include easement.
(Note 7) The number for the site area is only for the power plant’s and self-employed line’s surface right and doesn’t
include leasehold right and easement.
(Note 8) The number for the site area is only for the power plant’s, self-employed line’s and access road’s surface rightand doesn’t include easement.

Certified
Operator

Asset #

Project name

S-01

CS Shibushi-shi
Power Plant

Tida Power 01 G.K

S-02

CS Isa-shi Power
Plant

S-03

PPA company

Acquisition Fiscal periodPriceend valuation(million yen) (million yen)
(Note 1)
(Note 2)

Kyushu ElectricPower Co., Inc

540

Tida Power01 G.K.

Kyushu ElectricPower Co., Inc

372

368

CS Kasama-shi
Power Plant

Tida Power01 G.K.

TEPCO Energy
Partner,
Incorporated

907

1,044

CS Isa-shi Dai-niPower Plant

Tida Power01 G.K.

Kyushu ElectricPower Co., Inc

778

766

563

36

October 24, 2013

June 1, 2037

30,376(Note 5)32

February 27, 2015

September 15,
2036

S-04

31,05932

September 26, 2014 June 29, 2037

S-05

CS Yusui-cho
Power Plant

Tida Power01 G.K.

Kyushu ElectricPower Co., Inc

670

660

S-06

CS Isa-shi Dai-sanPower Plant

Kyushu Electric
Tida Power01 G.K..
Power Co., Inc

949

943

S-07

TEPCO Energy
CS Kasama-shi DaiTida Power01 G.K.. Partner,
ni Power Plant
Incorporated

850

889

S-08

CS Hiji-machi
Power Plant

1,029

1,012

S-09

CS Ashikita-machi
Power Plant

S-10

452,760(Note 7)32

40

February 24, 2015

February 22, 2013
(A)
February 28, 2013
(B)

August 9, 2037

511

23

347

785

638,552(Note 6)37,373421

Fiscal period
end book value(million yen)
(Note 4)142
344

March 2, 2037

September 12,
2037

Appraisal value ofsolar plants(million yen)(Note 3)(upper：solar energy
facility) (lower：land)

Tida Power01 G.K.

Kyushu ElectricPower Co., Inc

Tida Power01 G.K..

Kyushu Electric Power
Co., Inc

989

991

CS Minamishimabarashi Power Plant (East)
Tida Power 01 G.K.
/ CS
Minamishimabara-shi

Kyushu Electric Power
Co., Inc

1,733

1,800

259
723
42
628
31
883
59
846
43
972
40
951
39

1,719

860

720
622
882

783

951
917

1,608

Power Plant (West)

80

S-11

CS Minano-machi
Power Plant

Tida Power01 G.K.

TEPCO Energy
Partner, Incorporated

1,018

1,137

S-12

CS Kannami-cho
Power Plant

Tida Power01 G.K..

TEPCO Energy
Partner, Incorporated

514

571

S-13

CS Mashiki-machi
Power Plan

Tida Power01 G.K.

Kyushu Electric Power
Co., Inc.

S-14

CS Koriyama-shi
Power Plan

20,084

21,732

Tida Power01 G.K..

Tohoku Electric Power
Co., Inc.

S-15

CS Tsuyama-shi
Power Plan

Tida Power01 G.K..

The Chugoku ElectricPower Co., Inc.

746

796

S-16

CS Ena-shi Power
Plant

Tida Power01 G.K..

The Chubu ElectricPower Co., Inc.

757

834

S-17

CS Daisen-cho Power Tida Power01 G.K..
Plant (A) and (B)(Note 5)The Chugoku ElectricPower Co., Inc.

10,447

10,809S-18

CS Takayama-shi
Power Plant

Tida Power01 G.K.

The Chubu ElectricPower Co., Inc.

CS Misato-machi
Power Plant

Univergy 01 G.K.
(Note 5)TEPCO Energy
Partner, Incorporated

CS Marumori-machi
Power Plant

CLEAN ENERGIESSOLUTIONS K.K.
(Note 5)

Tohoku Electric Power
Co., Inc.

S-19

S-20

S-21

CS Izu-shi Power
Plant

LOHAS CLEAN
ENERGIES WORLD
K.K.

246

326

262

342

470

478
(Note 6)850

848
(Note 6)

(iii)

868

991

269
526

3,490

18,820

210

242

52
656

761

140
797

688

37
10,437372

10,023

280

323

61
347

477

131
830

843

18
4,408

TEPCO Power Grid,
Incorporated

Total

4,569

4,647
(Note 6)48,85051,498239
45,881
5,617

S-01 CS Shibushi-shi Power Plant

481

45
18,242

Operational Results of Each Power Generation Facilities (in JPY thousand)

4,613
46,473(Note 1) Acquisition price is based on acquisition price as described in the purchase agreements (excluding acquisition

Accounting Item

1st FP

2nd FP

3rd FP

4th FP

5th FP

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Fr. Jul. 1,
2019
To Dec. 31,
2019-24,112
12,19736,31019,235
7,474
26,71018,727
6,605
25,332

19,137
6,288
25,426

-

2,665
2,665
2,573
2,376
197
12,608593
11,95955
17,847

2,664
2,664
1,912
1,745
166
9,456
445
8,969
41
14,032

2,254
2,254
1,907
1,701
205
9,459
447
8,970
41
13,621

2,254
2,254
2,296
2,073
223
9,472
457
8,973
41
14,023-

18,463

12,677

11,711

11,402

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant(B)
Income from rental of renewable energy power plant (A-B)

expenses related to the payment of outsourcing service fees, property-related taxes, taxes on depreciable assets,urban planning taxes, consumption taxes and other fees).

S-02 CS Isa-shi Power Plant(Note 2) Median project valuation report amount is the median amount that we calculated based on the estimated values
as of June 30, 2019 provided to us by PricewaterhouseCoopers Sustainability LLC or Ernst & Young Transaction
Advisory Services Co., Ltd. in its project valuation report. Based on the appraised value in the range stated in the

Accounting Item

valuation report with the date of the value opinion on June 30, 2019, which was obtained fromPricewaterhouseCoopers Sustainability LLC or Ernst & Young Transaction Advisory Services Co., Ltd., theInvestment Corporation calculated the total sum of the intermediate values according to Article 41, paragraph 1 of
the CSIF's Articles of Incorporation, and the said sum is used in the statement.
(Note 3) On the upper row of the appraisal value of solar plants, an assumed appraisal value of solar energy projects thatis obtained by deducting the real estate appraisal value calculated by Daiwa Real Estate Appraisal Co., Ltd. fromthe appraised value at the end of the period in (Note 2) above is stated, and on the lower row, an amount statedin the real estate appraisal report prepared by Daiwa Real Estate Appraisal Co., Ltd. is stated. Real estateincludes its superficies right.
(Note 4) Fiscal period end book value is the book value of solar energy as of June 30, 2019.
(Note 5) Former certified operator, CLEAN ENERGIES XXI G.K., was merged into Tida Powe01 G.K. as of March 19,
2019.
(Note 6) The amounts are based on the valuation by Ernst & Young Transaction Advisory Services Co., Ltd. and rounded
down at JPY million.

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant(B)
Income from rental of renewable energy power plant (A-B)

1st FP

2nd FP

3rd FP

4th FP

5th FP

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec.
31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Fr. Jul. 1,
2019
To Dec. 31,
2019-18,1909,608
27,79914,244
7,166
21,411

14,313
5,648
19,961

14,171
5,230
19,402

-

1,349
1,349
3,034
1,808
170
1,055
10,445341
10,07923
14,829

1,346
1,346
2,248
1,328
141
778
7,833
256
7,559
17
11,428

1,699
1,699
2,261
1,299
168
794
7,835
256
7,561
17
11,796

1,698
1,698
2,635
1,655
182
797
7,837
256
7,563
17
12,170-12,969

9,982

8,165

7,232

S-03 CS Kasama-shi Power Plant
Accounting Item

S-05 CS Yusui-cho Power Plant
1st FP

2nd FP

3rd FP

4th FP

5th FP

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Fr. Jul. 1,
2019
To Dec. 31,
2019-

43,712
17,15460,86629,54911,846
110
41,50635,327
17,266
202
52,79629,39910,669173
40,242

-

3,050
3,050
4,665
4,296
368
19,283433
18,80545
26,999

3,050
3,050
4,359
3,033
1,025
299
14,462324
14,10433
21,872

3,791
3,791
3,277
2,931
346
14,462324
14,10433
21,532

3,792
3,792
3,255
2,879
375
14,462324
14,10433
21,510-33,866

19,63431,264

18,731

nd

rd

th

th

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant(B)
Income from rental of renewable energy power plant (A-B)

S-04 CS Isa-shi Dai-ni Power Plant
1 FP

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant(B)
Income from rental of renewable energy power plant (A-B)

1st FP

2nd FP

3rd FP

4th FP

5th FP

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Fr. Jul. 1,
2019
To Dec. 31,
2019-33,203
11,83145,034

23,595
10,41034,006

26,827
5,533
32,361

23,476
8,425
31,901

-

2,635
2,635
5,389
3,396
305
1,687
18,972761
17,897313
26,997

2,634
2,634
4,010
2,494
252
1,263
14,229571
13,423
235
20,873

3,277
3,277
3,987
2,425
298
1,263
14,242582
13,425
235
21,507

3,274
3,274
4,438
2,850
324
1,263
14,260595
13,429235
21,972-

18,03613,132

10,853

9,928

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant(B)
Income from rental of renewable energy power plant (A-B)

S-06 CS Isa-shi Dai-san Power Plant
st

Accounting Item

Accounting Item

2

FP

3 FP

4 FP

5 FP

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Fr. Jul. 1,
2019
To Dec. 31,
2019-37,574
16,48154,056

29,412
11,59041,00329,51010,641
40,152

29,263
9,522
38,785

-

2,962
2,962
6,360
3,909
326
2,124
21,926408
21,46355
31,249

2,964
2,964
5,150
2,871
418
269
1,590
16,445306
16,09741
24,559

3,768
3,768
5,236
2,866
458
320
1,590
16,449306
16,101
41
25,454

3,768
3,768
4,695
2,756
347
1,590
16,457306
16,10941
24,920-22,807

16,443

14,697

13,864

Accounting Item

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant(B)
Income from rental of renewable energy power plant (A-B)

1st FP

2nd FP

3rd FP

4th FP

5th FP

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Fr. Jul. 1,
2019
To Dec. 31,
2019-45,112
19,79964,91235,02815,05650,08535,695
12,16547,86034,851
11,72846,579

-

3,525
3,525
7,387
4,319
348
2,719
26,377386
25,922
68
37,290

3,526
3,526
5,500
3,172
290
2,036
19,783290
19,44151
28,809

4,494
4,494
5,551
3,080
84
349
2,036
19,784290
19,44351
29,830

4,494
4,494
5,459
3,042
379
2,036
19,799290
19,45851
29,753-27,621

21,27518,03016,826

S-07 CS Kasama-shi Dai-ni Power Plant
Accounting Item

S-09 CS Ashikita-machiPower Plant
1st FP

2nd FP

3rd FP

4th FP

5th FP

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Fr. Jul. 1,
2019
To Dec. 31,
2019-

43,063
16,95960,02329,161
12,35441,51634,897
16,386
51,28429,013
9,415
38,429

-

3,371
3,371
7,526
4,084
346
3,095
23,453
310
23,08557
34,350

3,370
3,370
6,000
3,318
285
2,396
17,604247
17,31442
26,975

4,304
4,304
6,964
3,532
700
335
2,396
17,604247
17,31442
28,873

4,304
4,304
5,606
2,847
362
2,396
17,604247
17,31442
27,514-25,672

14,541

22,41010,914thth

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant(B)
Income from rental of renewable energy power plant (A-B)

S-08 CS Hiji-machi Power Plant
1 FP

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant(B)
Income from rental of renewable energy power plant (A-B)

1st FP

2nd FP

3rd FP

4th FP

5th FP

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Fr. Jul. 1,
2019
To Dec. 31,
2019-

44,791
21,11465,90637,301
15,543
52,84535,753
12,81548,56837,113
11,371
48,484

-

3,973
3,973
7,205
4,557
402
2,245
26,937
1,921
24,679336
38,116

3,972
3,972
5,431
3,347
66
336
1,681
20,203
1,441
18,509252
29,606

4,879
4,879
5,337
3,249
406
1,681
20,207
1,441
18,514252
30,424

4,876
4,876
5,880
3,758
440
1,681
20,216
1,441
18,523
252
30,973-27,78923,23818,144

17,511

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant(B)
Income from rental of renewable energy power plant (A-B)

S-10 CS Minamishimabara-shi Power Plant (East and West)st

Accounting Item

Accounting Item

2

nd

FP

rd

3 FP

4 FP

5 FP

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Fr. Jul. 1,
2019
To Dec. 31,
2019-

48,091
26,45874,54937,673
17,65055,32337,94915,80553,75537,482
10,943
48,426

-

4,113
4,113
8,278
5,064
442
2,771
29,4191,113
28,153
152
41,810

4,112
4,112
5,682
3,733
75
361
1,512
22,064835
21,114114
31,858

5,167
5,167
5,622
3,562
419
1,639
22,066835
21,116114
32,855

5,166
5,166
5,547
3,578
456
1,512
22,070835
21,120114
32,783-32,73823,46420,89915,643

Accounting Item

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant(B)
Income from rental of renewable energy power plant (A-B)

1st FP

2nd FP

3rd FP

4th FP

5th FP

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Fr. Jul. 1,
2019
To Dec. 31,
2019-80,84742,444
123,291

65,85430,406
96,26063,48827,37090,85965,521
20,78286,303

-

6,747
6,747
13,894
7,627
571
5,696
46,965985
45,647331
67,607

6,744
6,744
10,331
5,601
469
4,260
35,224739
34,235248
52,2998,533
8,533
11,314
6,502
551
4,260
35,224739
34,235248
55,0718,530
8,530
10,188
5,317
611
4,260
35,224739
34,235248
53,943-55,68343,96035,78732,360S-11 CS Minano-machi Power Plant
Accounting Item

S-13 CS Mashiki-machi Power Plant
1st FP

2nd FP

3rd FP

4th FP

5th FP

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Fr. Jul. 1,
2019
To Dec. 31,
2019-45,753
17,427
6
63,18730,8439,769
140,61435,51915,00550,52530,6882,722
33,410

-

4,907
4,907
5,128
4,753
374
20,8191,021
19,79830,855

4,904
4,904
4,143
3,491
330
321
15,798766
15,031
24,845

4,412
4,412
3,953
3,372
178
402
16,132766
15,36624,499

4,410
4,410
3,750
3,313
436
16,132766
15,36624,293-32,331

15,76926,025

9,117

th

th

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant(B)
Income from rental of renewable energy power plant (A-B)

S-12 CS Kannami-cho Power Plant
1 FP

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant(B)
Income from rental of renewable energy power plant (A-B)

1st FP

2nd FP

3rd FP

4th FP

5th FP

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Fr. Jul. 1,
2019
To Dec. 31,
2019-852,054
412,102
1,264,157

691,759
254,45012
946,222664,560
247,774
912,334

688,283
232,965
921,249-

112,207112,207
89,59081,8987,659
32459,030
4,625
443,887
10,518660,827

112,206
112,206
67,63861,1686,397
71344,335
3,531
332,915
7,888
524,180

96,65096,65068,91861,1687,703
45344,340
3,531
332,915
7,893
509,908

96,65096,65069,02660,428176
8,356
65
344,350
3,531
332,916
7,902
510,027-

603,329

422,042

402,426

411,221

1st FP

2nd FP

3rd FP

4th FP

5th FP

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Fr. Jul. 1,
2019
To Dec. 31,
2019

-

7,267
4,627
11,895

7,619
3,978
2
11,6008,085
5,215
13,300

7,580
3,317
2
10,901

-

768
768
3,492
272
3,220
4,261

1,081
922
158
4,191
327
3,864
5,272

1,298
1,298
990
883
106
4,191
327
3,864
6,479

1,296
1,296
1,590
876
600
113
4,191
327
3,864
7,077

-

7,633

6,328

6,820

3,823

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant(B)
Income from rental of renewable energy power plant (A-B)

S-14 CS Koriyama-shi Power Plant
st

Accounting Item

Accounting Item

2

nd

FP

rd

3 FP

4 FP

5 FP

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Fr. Jul. 1,
2019
To Dec. 31,
2019-24,748
11,23335,982

18,5505,241
23,791

19,6449,060
28,70518,456
5,304
23,760

-

2,772
2,772
4,539
2,594
119
1,826
12,837461
12,302
73
20,149

2,770
2,770
3,978
1,905
125
1,947
9,639
357
9,226
55
16,388

2,398
2,398
3,735
1,840
42
198
1,653
9,662
380
9,226
55
15,796

2,398
2,398
3,976
2,108
213
1,654
9,662
380
9,226
55
16,036-

15,832

7,402

12,908

7,724

Accounting Item

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant(B)
Income from rental of renewable energy power plant (A-B)

S-15 CS Tsuyama-shi Power Plant
Accounting Item

S-17 CS Daisen-cho Power Plant (A and B)
1st FP

2nd FP

3rd FP

4th FP

5th FP

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Fr. Jul. 1,
2019
To Dec. 31,
2019-21,83013,23335,064

22,253
10,44732,701

24,444
12,66837,11322,141
12,48534,627

-

2,371
2,371
10,640290
10,095254
13,011

3,156
2,846
310
12,768348
12,114304
15,924

3,901
3,901
10,045
2,727
7,096
221
12,946365
12,276304
26,893

3,898
3,898
2,982
2,704
278
12,949376
12,267304
19,829-22,052

16,776

10,21914,797thth

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant(B)
Income from rental of renewable energy power plant (A-B)

S-16 CS Ena-shi Power Plant
1 FP

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant(B)
Income from rental of renewable energy power plant (A-B)

1st FP

2nd FP

3rd FP

4th FP

5th FP

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Fr. Jul. 1,
2019
To Dec. 31,
2019

-

-

211,123
29,966
241,089

327,901
247,066
574,967

385,926
121,853
507,780--

34,45023,490
140
2,511
8,308
136,406
3,088
132,820497
170,857

59,954
59,95454,49836,805
4,622
13,070214,526
4,863
208,879782
328,979

59,954
59,95453,88536,0095,019
12,856
214,565
4,902
208,879
782
328,404--

70,232245,988

179,375

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant(B)
Income from rental of renewable energy power plant (A-B)

S-18 CS Takayama-shi Power Plant
st

Accounting Item

Accounting Item

2

nd

rd

FP

3 FP

4 FP

5 FP

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Fr. Jul. 1,
2019
To Dec. 31,
2019

-

-

14,524
7,383
21,90826,39815,98242,381

25,611
12,20337,815

-

-

2,561
1,827
138
595
9,226
374
8,790
61
11,788

4,344
4,344
4,306
3,115
252
938
14,510589
13,823
97
23,161

4,344
4,344
4,007
2,801
273
933
14,510589
13,823
97
22,862--

10,12019,21914,953

Accounting Item

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant(B)
Income from rental of renewable energy power plant (A-B)

1st FP

2nd FP

3rd FP

4th FP

5th FP

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Fr. Jul. 1,
2019
To Dec. 31,
2019

-

-

4,937
1,841
6,779

11,075
5,290
16,365

9,720
4,625
14,346

-

-

891
828
62
3,494
218
3,267
8
4,386

2,007
2,007
1,411
1,296
114
5,496
344
5,139
12
8,915

2,006
2,006
1,393
1,269
123
5,496
344
5,139
12
8,895

-

-

2,393

7,450

5,450

S-19 CS Misato-machi Power Plant
Accounting Item

S-21 CS Izu-shi Power Plant
1st FP

2nd FP

3rd FP

4th FP

5th FP

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Fr. Jul. 1,
2019
To Dec. 31,
2019

-

-

-

10,733
6,273
17,006

13,005
5,628
18,634

-

-

-

877
877
5,056
117
4,896
41
5,934

2,230
1,315
645
269
7,594
176
7,345
72
9,824

-

-

-

11,072

8,809

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant(B)
Income from rental of renewable energy power plant (A-B)

st

1 FP

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant(B)
Income from rental of renewable energy power plant (A-B)

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant(B)
Income from rental of renewable energy power plant (A-B)

1st FP

2nd FP

3rd FP

4th FP

5th FP

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Fr. Jul. 1,
2019
To Dec. 31,
2019

-

-

-

-

17,832
8,750
26,582

-

-

-

-

3,786
2,270
1,516
15,742732
14,755254
19,528

-

-

-

-

7,053

b. Details of Investment in Operating Rights for Public Facilities

S-20 CS Marumori-machi Power Plant
Accounting Item

Accounting Item

2

nd

rd

FP

th

th

3 FP

4 FP

5 FP

Fr. May 18,
2017
To Sep. 30,
2017

Fr. Oct. 1,
2017
To Jun. 30,
2018

Fr. Jul. 1,
2018
To Dec. 31,
2018

Fr. Jan. 1,
2019
To Jun. 30,
2019

Fr. Jul. 1,
2019
To Dec. 31,
2019

-

-

-

17,98911,76829,75828,3306,694
35,025

-

-

-

3,730
1,376
2,354
8,847
261
8,464
121
12,578

8,421
2,666
346
782
4,625
17,036503
16,297234
25,457---

17,1799,567

Not applicable.

c. Details of Investment in Real Estate
The real estate that CSIF holds are to be provided for the use of renewable energy power generation facilities
and described in “(3) Details of Assets / a. Details of Power Generation Facilities / (i)Summary” above.

d. Details of Investment in Securities
Not applicable.

(4) Other Assets
Assets related to the power plants are described in “(3) Details of Assets / a. Details of Power Generation
Facilities / (iii) Operational Results of Each Power Generation Facilities (in JPY thousand)” and other assets as ofDecember 31, 2019 are as follows.
Contracted Amount
Category

Type

Transaction Outside ofMarket(Note 1)

Interest Rate Swap

Total

Over 1 year
(Note 1)

Fair Value(Note 2)

21,411,430

20,187,606-

21,411,430

20,187,506-(Note 1) The contracted amount is based on notional amount.
(Note 2) As the transaction is booked based on special treatment under the financial instrument accounting standard, thefair value is omitted.

(5) Location of Assets by Country(2) Summary of Debts
Category
LenderThere is no asset in the countries outside Japan as of December 31, 2019.

4.

Capital Expenditures for Assets under Management(1) Scheduled Capital Expenditures
The following table shows capital expenditures for renewable energy power generation facilities, etc. owned by
CSIF during the following fiscal periods. The amount includes the portion which is to be treated as the expense
during the period.
Projected amount
Name ofinfrastructure
assets, etc.
CS Mashikimachi Power
Plant

Location

Mashiki-machi,
Kumamoto

Purpose(million yen)

Projected period

Building works
for curtailment
control

Total amountAmount paid
during 5th FP

32-

From February 2020
To September 2020

Amount paid byprior FP-(2) Capital Expenditures during the Period
The following table shows capital expenditures for renewable energy power generation facilities, etc. owned by
CSIF during the fiscal period under review.
Name of infrastructure assets, etc.
(Location)
CS Isa-shi Dai-san Power Plant(Isa-shi, Kagoshima)

Purpose

Implementation period

Inclination correction works
for junction box

From November 1, 2019

CS Tsuyama-shi Power Plant(Tsuyama-shi, Okayama)Land curing works

Borrowing
Date

Sumitomo Mitsui
Banking
Corporation
Long- MUFG Bank, Ltd.
term
Nanto Bank, Ltd.
The Ashikaga
Bank, Ltd.
The Hiroshima
Bank, Ltd.
Shinsei Bank, Ltd.

(thousand yen)

Shinsei Bank, Ltd.
MUFG Bank, Ltd.
The Ashikaga
Bank, Ltd.
The Shonai Bank,Ltd.
Nanto Bank, Ltd.
The Hiroshima
Bank, Ltd.

3,366

From August 5, 2019

1,720

To August 30, 2019

Other plants

970

2,201
1,375

2,140
1,337

1,375

1,337

917
1,650
917

891
1,605
891

1,650

1,605

1,650
825
825
183
825

1,605
802
802
178
802

820

-

1,647

1,603

1,647

1,603

1,903
951

1,851
925

975

948

487

474

February 1, 2018

Shinsei Bank, Ltd.

Amount paid

To December 2, 2019

EndingBalance

Shinsei Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui
Banking Corporation
MUFG Bank, Ltd.
Resona Bank, Ltd.
Orix Bank Corporation
October 31, 2017
The Hiroshima Bank,Ltd.
Nanto Bank, Ltd.
The Oita Bank, Ltd.
The Shonai Bank, Ltd.
The Mie Bank, Ltd.
The Tochigi Bank, Ltd.
Sumitomo Mitsui
Banking Corporation

Average
RepaymentInterest Rate (%) Repayment Date
Method(Note 1)

Beginning
Balance

September 6,
2018

March 29, 2019

680

661

-

1,000
700

-

500

-

1,000

-

500

-

800

MUFG Bank, Ltd.

-300

23,513

26,873(3) Cash Reserved for Long-term Maintenance Plan
Not applicable.

Abstract

0.84500(Note 2)October 31,
2027

Partialamortization(Note 3)

Unsecured andno guarantee

0.57636

February 1,
2021

Partialamortization(Note 4)(Note 3)

Unsecured andno guarantee

1.04200(Note 2)September 6, Partial2028
amortization(Note 3)

Unsecured andno guarantee

0.57636

March 29, 2022

Partialamortization(Note 3)

Unsecured andno guarantee

0.52085

November 29, Partial2021
amortization(Note 3

Unsecured andno guarantee

0.26738

Earlier date ofNovember 29,
2021 or interest
payment date
Bulletimmediately
after refund of
consumption tax(Note 3

Unsecured andno guarantee

6,056

Total

Use

(Note 1) Average interest rate are based on actual number of days and weighted average. The number are rounded down.

5.

Summary of Expenses and Debts(Note 2) For the debts with interest rate swap for hedging interest rate risk, the average interest rate incorporates the effect(1) Summary of Expenses(Note 3) The uses of the debt proceeds are the purchase of power plants.

Fiscal Periodof such interest rate swap.
(Note 4) The balance had been repaid on November 7, 2019 by utilizing the proceeds of the 1st investment corporation
4th FP

5th FP

From January 1, 2019
To June 30, 2019

From July 1, 2019
To December 31, 2019bond issuance.

Asset Management Fee

55,97952,213Administrative Service Fee

18,945

18,542

Directors’ Compensation

2,400

2,400

Other Operating Expenses

56,75256,184

134,076

129,340Total

(3) Investment Corporation Bond
Name of Investment
Corporation Bond

Issue dateb. Infrastructure Asset

Beginning balance Ending Balance Interest rate
(million yen)(million yen)(%)

Canadian Solar
Infrastructure Investment November 6,
Corporation / The 1st2019
Unsecured Bond

-

1,100

0.71

Redemption
date

Redemption
methodPurpose

Abstract

November 6,
2024

Bullet(Note)

Unsecured andno guarantee

Purchase or

Name

Sales
Purchase

CS Izu-shi Power Plant

Transaction

Purchase Price (in JPY

Asset Value

Datemln) (Note 1)(Note 2)

November29, 2019

Total

-

4,569

4,443 – 4,789

4,569

4,443 – 4,789

Valuation Date
November 29,
2019-(Note 1) “Purchase Price” denotes the contracted price on the purchase agreement.
Total

-

1,100

(Note 2) “Asset Value” includes the appraisal value of the real estate mentioned in “a. Real Estate (appraisal value)”
above.

(Note) The purpose is repayment of the debt whose maturity is approaching, payment of future acquisition cost of specified(Note 3) The investigation of the asset value is conducted by Grant Thornton Taiyo LLC based on the guideline No.23

assets, payment of repair cost and capital expenditure, and working capital.

published by JICPA.

(4) Short-term Investment Corporation Bondc. Other

Not applicable.

There has been no transaction other than stated in “a. Real Estate (appraisal value)” and “b. Infrastructure
Asset” above.

(5) Unit Acquisition Right
Not applicable.

(4) Transactions with Interested Parties
a. Sales and Purchases
Purchase / Sale Amount (Note 2)

6.

Category

Sales and Purchases during the Period
Total(1) Summary for Sales and Purchases of Infrastructure Assets, Infrastructure-related Assets, Real
Estate and Asset-backed Securities
Purchase
Asset No.

Name

S-21

Amount (in JPYmln) (Note)

Date

CS Izu-shi
Power Plant

Sales
Amount (in JPY Book Value (in Profit / Loss (inmln)
JPY mln)
JPY mln)

Date

Purchase Amount

Sales Amount(in JPY thousand)(in JPY thousand)

4,569,000-

Breakdown of Transactions with Interested
Parties (Note 1)
LOHAS CLEAN ENERGIES WORLD K.K.

4,569,000(100.0%)

-

(-%)

Total

4,569,000(100.0%)-(-%)(Note 1) The definition of “Interested Parties” is depending on the relevant law.

November 29,
2019

Total

4,569

-

-

-

-

4,569

-

-

-

-

(Note) “Amount” is the purchase price based on the purchase contract and excludes costs such as property tax and(Note 2) The amounts are based on the amount stated in the purchase and sales agreement of the assets.
(Note 3) The parties above were the interested parties at the time of purchase of the assets. But, after the purchase, they
were no longer the interested parties.

consumption tax.

b. Lease(2) Summary for Sales and Purchases of Other Assets

Not applicable.

Not applicable.

c. Commission Paid
Not applicable.

(3) Valuation of Specified Assets
a. Real Estate (appraisal value)
Purchase or

Name

Sales
Purchase

CS Izu-shi Power Plant
Total(5) Asset Manager’s Transaction Related to Asset Manager’s Other BusinessTransaction

Purchase Price (inAppraisal Value

Date

JPY mln) (Note 1)(Note 2)

November 29,
2019
-

231

231

June 30, 2019

231

231

-

(Note 1) “Purchase Price” denotes the contracted price for land ownership right or land surface right.
(Note 2) Daiwa Real Estate Appraisal Co., Ltd. Is the appraiser.

Valuation Date

Asset Manager doesn’t conduct any of the type1 and type2 financial instrument exchange business, real estatetransaction business and specified joint real estate ventures. There was no applicable transaction during theperiod.

7.

Summary of Accounts(1) Summary of Assets, Liabilities, Capital and Income/Loss
Please see the balance sheet, statement of income, statement of changes in unitholders’ equity, note andstatement of cash distribution.

(2) Change in Calculation Method of Depreciation
Not applicable.

(3) Change in Valuation Method of Infrastructure Assets and Real Estate
Not applicable.

(4) Company Setting Investment Trust Beneficial Securities
Not applicable.

8.

Other
(1) Notification
a. Unitholders’ Meeting
No unitholders’ meeting was held during the FP.

b. Board of Executives Meeting
Summary of new contract and change for major contract of the fund which was approved by the board of
executives meeting for the FP.
Date of Approval

Subject of Approval

Summary
Regarding the comprehensive resolution concerning
the issuance of investment corporation bond, which

October 23, 2019

Appointment of administrator forinvestment corporation bond

was approved on the same date, the candidate
companies were approved for the administrator for theinvestment corporation bond, and the decision-making
authority for other necessary matters was left to the
executive officers.

(2) Treatment of Amount and Ratio with Fractional Point
Unless otherwise described, the amounts are rounded down and the ratio are rounded up or down.

Balance Sheet（Unit：thousand yen）
5th Period(June, 2019)(December 31, 2019)

Current portion of long-term loans payable

Current Assets
2,466,624

2,474,056

Operating accounts receivable

426,756

268,927

Prepaid expenses

71,805

157,523-

329,815

Consumption taxes receivable
Other current assets

215

860

Total current assets

2,965,401

3,231,182

Fixed Assets
Property and equipment
Structures
Accumulated depreciation

Current liabilities
Accounts payable – operating

4th Period

AssetsCash and bank deposit

Liabilities

835,726

1,040,844(45,417)(63,543)

83,00367,471

Accrued expenses

112,673

102,033

Income taxes payable
Consumption tax payable
Deposits received
Total current liabilities

Investment corporation bond

1,100,000
25,360,810

Total non-current liabilities

22,227,007

26,460,810

23,787,702

28,186,239

22,050,175

22,050,175

Total liabilities
Net assets
Unitholders' equity

977,300

Accumulated depreciation(2,191,437)(3,002,153)

Deduction from unitholders’ capital

Machinery and equipment ,net

36,418,597

39,724,832

Unitholders’ capital (net value)592,249

Tools, furniture and fixtures, net

488,605

548,881Land

4,466,771

4,469,653

Total property and equipment

42,164,283

45,720,667

Leasehold rights
SoftwareTotal intangible assets

512,411753,139

2,746

2,353

515,158

755,492

Investments and other assets
Long-term prepaid expenses

307,424

316,119

Deferred tax assets

12

12Long term deposits

7,800

-

Guarantee deposits

21,02137,790Total investment and other assets

336,258

353,92243,015,700

46,830,082

Investment corporation bond issuance cost

-

8,536

Total deferred assets

-

8,536

45,981,101

50,069,801

Total fixed assets
Deferred Assets

Total Assets

Unit holders’ capital(567,281)(700,678)

21,482,893

21,349,496

710,506

534,065

Surplus
Unappropriated retained earnings(Accumulated deficit)
Total surplus

710,506

534,065

Total unitholders' equity

22,193,399

21,883,561*1 22,193,399*1 21,883,561

45,981,101

50,069,801

Total net assets

Intangible assets

1,562
1,725,429-

42,726,985(43,368)

1,750
1,560,694

22,227,007

790,308

521,176860
8,317

Long-term loan payable

38,610,034(32,570)

868
49,904Non-current liabilities

Structures, net

Accumulated depreciation

32,9881,512,196

Accounts payable – otherMachinery and equipment

Tools, furniture and fixtures

26,344
1,286,149

Total liabilities and net assets

Statements of Changes in Unitholders’ Equity
4th Fiscal Period (From January 1, 2019 to June 30, 2019)

Statement of Income（Unit: thousand yen）
(Unit: thousand yen)
Unitholders’ equity
4th period

5th period
Unitholders’ capital(from January 1, 2019(from July 1, 2019

to June 30, 2019)

to December 31, 2019)

Total
Deduction fromOperating revenues
Rental revenues of renewable energy power generation

Unitholders’ capital*1 2,185,392*1 2,088,116

2,185,392

2,088,116*1 1,234,114*1 1,261,805

Asset management fee

55,97952,213Administrative service fees

18,945

18,542

Director’s compensation

2,400

2,400

facilities, etc.

Operating expenses
Rental expenses of renewable energy power generation
facilities, etc.

Taxes and duties

399

772
55,412

Total operating expenses

1,368,191

1,391,146

817,201

696,970

15

13

Insurance income

27,146-

Interest on refund

1,355

-

Total non-operating income

28,517

13

106,345412,298

412,298

22,315,263

22,315,263-(420,072)(420,072)--(420,072)(420,072)

Dividend of surplus

-

-

-

(412,211)(412,211)(412,211)(412,211)Net Income

-

-

-

710,419

710,419

710,419

710,419-(420,072)(420,072)

298,208

298,208(121,864)(121,864)*1 22,050,175(567,281)

21,482,893

710,506

710,506

22,193,399

22,193,399

the period

earnings

Total changes of items
during the period
Balance as of June 30,

5th Fiscal Period (From July 1, 2019 to December 31, 2019)（Unit: thousand yen）

107,285

Borrowing-related expenses

28,08353,389Total non-operating expenses

134,428

162,115

Ordinary income

711,290534,868

Income before income taxes

711,290534,868

Income taxes - current

870

862

Income tax - deferred

00Retained earnings (deficit) brought forward
Unappropriated retained earnings (Accumulated deficit)

Surplus
Total

Deduction from263

Net income

Unitholders’ capital

1,176
-

Total income taxes

equityUnitholders’ equity

Interest on investment corporation bondcost

Total surplus

loss

21,902,965

Non-operating expenses

Amortization of investment corporation bond issuancesurplus or(147,209)2018

Non-operating incomesInterest expenses

capital(net)Total net assets

unitholders’Capital22,050,175

2019

Distribution in excess of

56,352

Interest income

Unitholders’Changes of items during

Other operating expenses

Operating income or loss

unitholders’capitalBalance as of January 1,
Total operating revenues

Surplus

870

862

710,419534,00586

59

710,506

534,065

Unitholders’ capital

unitholders’capitalBalance as of January 1,

Unitholders’capital(net)Total net assets

unitholders’Capitalsurplus or

Total surplus

equityloss

22,050,175(567,281)

21,482,893

710,506

710,506

22,193,399

22,193,399−(133,396)(133,396)−−(133,396)(133,396)

Dividend of surplus

−

−

−

(710,446)(710,446)(710,446)(710,446)

Net Income

−

−

−

534,005

534,005

534,005

534,005−(133,396)(133,396)(176,441)(176,441)(309,837)(309,837)

22,050,175(700,678)

21,349,496

534,065534,065

21,883,561

21,883,561

2019
Changes of items during
the period
Distribution in excess ofearnings

Total changes of items
during the period
Balance as of June 30,
2018

*1

Notes

Notes to Statement of Income*1 Breakdown of profits and losses from the rental business of renewable energy power generation facilities, etc.

Summary of Significant Accounting Policies(from July 1, 2019 to December 31, 2019)
1.Method of depreciation andamortization of non-current assets(Unit: thousand yen)

(1) Property and equipment
The straight-line method is adopted. In addition, the useful lives of major property andequipment are as shown below:

From January 1, 2019

From July 1, 2019

to June 30, 2019

to December 31, 2019

Structures ........................................................................ 22 - 25 years
Machinery and equipment ............................................... 22 - 25 years
Tools, furniture and fixtures ............................................. 22 - 25 years

A. Operating revenue from the rental business of renewable energy power generation facilities, etc.

(2) Intangible assets
The straight-line method is adopted. In addition, the useful life is as shown below:

Rental revenue of renewable energy power generation facilities, etc.

Software .......................................................................... 5 years(Basic rent)(3) Long-term prepaid expenses
The straight-line method is adopted.
2.Method of deferred assets
amortization(Variable rent linked to actual output)

Investment corporation bond issuance cost

(Incidental income)The straight-line method over the period until the redemption date is adopted.

Total operating revenue from the rental business of renewableenergy power generation facilities, etc.

3.Standards for revenue and expense
recognition

1,478,843

1,567,010

706,346

520,930202

176

2,185,392

2,088,116

Accounting for fixed assets tax
With respect to fixed assets tax, city planning tax and depreciable assets tax, among

B. Operating expenses from the rental business of renewable energy power generation facilities, etc.

other taxes, on the infrastructure assets held, of the tax amount assessed andRental expenses of renewable energy power generation facilities, etc.

determined, the amount corresponding to the calculation period is accounted as rental
expenses. In addition, reimbursement such as fixed assets tax, which is paid to the(Management entrustment expenses)

144,616

146,524

8,560

1,768

217,138

217,112seller and other persons on the acquisition of infrastructure assets and other assets(“the amount equivalent to the fixed assets taxes and other taxes”) is not recognized as(Repair and maintenance costs)

rental expenses but included in the acquisition cost of the concerned infrastructure(Taxes and duties)

assets and other assets. In the fiscal period under review, the amount equivalent to the

4.Method of hedge accounting

fixed assets tax and other taxes included in the acquisition cost of infrastructure assets(Utilities expenses)--

and other assets is 504 thousand yen.

(Insurance expenses)

17,023

19,571(Depreciation expenses)

813,047

839,638(Land rent)

33,727

37,190--1,234,114

1,261,805

951,278

826,311(1) Method of hedge accounting
Special treatment is adopted for the interest rate swap that meets the requirements
for special treatment.
(2) Hedging instruments and hedged items:(Other rental expenses)･Hedging instruments……Interest rate swap transaction

Total operating expenses from the rental business of･Hedged items….Interest rate on loans

renewable energy power generation facilities, etc.

(3) Policy for hedging
CSIF conducts derivative transactions to hedge risks as set forth in the CSIF’s Articles of

C. Profits and losses from the rental business ofrenewable energy power generation facilities, etc. (A-B)

Incorporation according to the rules for risk management.
(4) Method of evaluation of effectiveness of hedging
The interest rate swap meets the requirements for special treatment, and thus theevaluation of effectiveness is omitted.
5.Other significant matters serving as

Notes to Statements of Changes in Unitholders’ Equity

Accounting for Consumption tax

the basis for preparation ofConsumption tax and local consumption tax are excluded from the corresponding

financial statements

transaction amount.

*1 Total number of authorized investment units and the total number of investment units issued and outstanding

Total number of authorized investment

Notes to Balance Sheet*1 Minimum net assets stipulated in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations(Unit: thousand yen)
As of June 30, 2019

As of December 31, 201950,00050,000units
Total number of investment units issued
and outstanding

From January 1, 2019

From July 1, 2019

To June 30, 2019

To December 31, 201910,000,000 unit

10,000,000 unit

231,190 unit

231,190 unit

Notes on Tax Effect Accounting
1.Breakdown of deferred tax assets and deferred tax liabilities by major cause(Unit: thousand yen)
(Unit: thousand yen)

Fiscal period ended

Book value

June 30, 2019(1) Cash and deposits

December 31, 2019

taxable income

2,466,624

-

12

12

426,756

426,756-1212(3) Long term deposits

Total deferred tax assets
Net amount of deferred tax assets

12

12

2.Breakdown of each major item that causes a significant difference between the effective
statutory tax rate and the rate of the burden of corporate tax and other taxes after the applicationof tax effect accounting(Unit: thousand yen)

7,800

7,800

-

2,901,181

2,901,181-

1,286,149

1,287,698

1,548(5) Long-term loans payable

22,227,007

22,491,852

264,844

Total liabilities

23,513,157

23,779,551

266,393---

Total assets(4) Current portion of long-term loans
payable(6) Derivative transaction(Note 1) Methods used for estimating the fair values of financial instruments and matters related to derivative transactions

Fiscal period ended

Fiscal period ended

AssetsJune 30, 2019

December 31, 2019(1) Cash and deposits (2) Operating accounts receivable

31.51%

31.51%

Loss carried forward and deducted for the period

These financial instruments are settled in the short term, and their fair values are deemed to approximate their book value.
Therefore, the book values are used as the values.

(Adjustment)
Dividends paid deductible for tax purpose

Difference

2,466,624(2) Operating accounts receivable

Accrued business tax not deductible from

Effective statutory tax rate

Fair value

Fiscal period ended(3) Long-term deposits(31.47) %(31.46) %This financial instrument refers to time deposits. With no significant difference between the expected interest rate for a new--

deposit and a contractual interest rate, their fair values are very close to their book values. Therefore, the book values are

0.08%

0.11%

0.12%

0.16%

used.
OthersRate of burden of corporate tax and other taxes after theapplication of tax effect accounting

Liabilities(4) Current portion of long-term loans payable(5) Long-term loans payable

With respect to long-term loans payable at variable interest rates, the condition that the interest rates are renewed every
certain period is applied to loans, and thus the market value is considered to be close to the book value. Accordingly, thebook value is used. In addition, for the long-term loans payable at variable interest rates subject to the special treatment ofNotes on Financial Instruments
For the 4th fiscal period (From January 1, 2019 to June 30, 2019)
1.Situation of financial instruments(1)

Policy for financial instruments
CSIF procures funds for acquiring new assets or repaying loans through loans from financial institutions or
issuing investment units. The basic policy is to build stable and sound financial operations to maintain andincrease earnings in the medium to long term and grow the size and value of assets.
(2) Details of the financial instruments and their risks and the risk management system
Long-term loans payables are one of the means to procure the funds for the acquisition of managed assets andare exposed to interest rate fluctuation risk and liquidity risk, among other risks. However, this risk is deducted
through the appropriate balancing of the loan period and the interest rate type, and diversification of lenders, andthe appropriate management of various types of indexes, especially the general application of the upper limit of theratio of interest-bearing, which is 60%.
(3) Supplementary explanation on fair value of financial instruments
The fair values of financial instruments are values based on market prices, or if there are no market prices,values are reasonably calculated. Since certain assumptions are used for the calculation of fair values, they
may change if different assumptions are used.

2. Matters relating to fair values of financial instruments
The table below shows the book value and fair values of financial instruments as of June 30, 2019 and thedifference between them. Financial instruments whose fair values are extremely difficult to estimate are notincluded in the table.

interest rate swap (refer to (6) 2. below), the fair value is measured by discounting the total sum of the principal and interest
treated together with the said interest rate swap as one at the interest rate that is applied when the similar loan is obtained
and that is reasonably estimated.
(6) Derivative transaction
1. Those to which hedge accounting is not applied
Not applicable.
2. Those to which hedge accounting is applied
Method of hedge
accounting

Type of derivativetransactions and othermatters

Special treatment Interest rate swap transactionof interest rate
Fixed payment/variable
swap
receipt

Major items
hedgedContract amount and otheramounts
Longer than
one yearLong-termloans payable

22,012,204

20,811,569

Fair
value

Method ofcalculation ofsaid market
value（Note）-(Note) Those that are subject to special treatment of interest rate swap are treated together with the current portion of
long-term loans payable and the long-term loans payable to be hedged as one, and thus their fair value is presented
together with the fair value of (Note 1) (4) Current portion of long-term loans payable and (5) Long-term loans payable
in “Notes on financial instruments 2.Matters relating to fair values of financial instruments, among other matters”

2. Matters relating to fair values of financial instruments(Note 2) Scheduled redemption amounts of monetary receivables after the closing date (June 30, 2019)

The table below shows the book value and fair values of financial instruments as of December 31, 2019 andthe difference between them. Financial instruments whose fair values are extremely difficult to estimate are notincluded in the table.

(Unit: thousand yen)
Longer thanWithin one year one year, within
two years

Longer than
two years,
within threeyears

Longer than
three years,
within fouryears

Longer thanfour years,
within fiveyears

Longer than
five years(1) Cash and deposits

2,466,624

-

-

-

-

-

(2) Operating accounts
receivable

426,756

-

-

-

-

-

(3) Long-term deposits

-

7,800

-

-

-

-

2,893,381

7,800

-

-

-

-

Total

(Unit: thousand yen)Book value(1) Cash and deposits

2,474,056-

268,927

268,927-

2,742,983

2,742,983-

1,512,196

1,513,923

1,726(4) Long-term loans payable

25,360,810

25,651,566

290,756(5) Investment corporation bond

1,100,000

1,100,000-

27,973,006

28,265,489

292,482---(Note 3) Scheduled redemption amount of loans payables after the closing date (June 30, 2019)

Total assets(Unit: thousand yen)
Longer than one Longer than two
Within one year year, within two
years, within
years
three years(4) Current portion of long-termloans payable(5) Long-term loans payable
Total

1,286,149---

Longer than fourLonger than five
years, within five
years
years
-

-

-

2,053,702

1,862,492

1,286,533

1,285,273

15,739,005

2,053,702

1,862,492

1,286,533

1,285,273

15,739,005

For the 5th fiscal period (From July 1, 2019 to December 31, 2019)
1.Situation of financial instruments(1)(3) Current portion of long-term loans
payableTotal liabilities

1,286,149

Policy for financial instruments
CSIF procures funds for acquiring new assets or repaying loans through loans from financial institutions or
issuing investment units. The basic policy is to build stable and sound financial operations to maintain andincrease earnings in the medium to long term and grow the size and value of assets.
(2) Details of the financial instruments and their risks and the risk management system
Long-term loans payables are one of the means to procure the funds for the acquisition of managed assets andare exposed to interest rate fluctuation risk and liquidity risk, among other risks. However, this risk is deducted
through the appropriate balancing of the loan period and the interest rate type, and diversification of lenders, andthe appropriate management of various types of indexes, especially the general application of the upper limit of theratio of interest-bearing, which is 60%.
(3) Supplementary explanation on fair value of financial instruments
The fair values of financial instruments are values based on market prices, or if there are no market prices,values are reasonably calculated. Since certain assumptions are used for the calculation of fair values, they may
change if different assumptions are used.

Difference

2,474,056(2) Operating accounts receivable

Longer than
three years,
within four
years

Fair value(6) Derivative transaction(Note 1) Methods used for estimating the fair values of financial instruments and matters related to derivative transactions
Assets(1) Cash and deposits (2) Operating accounts receivable
These financial instruments are settled in the short term, and their fair values are deemed to approximate their book value.
Therefore, the book values are used as the values.
Liabilities(3) Current portion of long-term loans payable(4) Long-term loans payable

With respect to long-term loans payable at variable interest rates, the condition that the interest rates are renewed every
certain period is applied to loans, and thus the market value is considered to be close to the book value. Accordingly, thebook value is used. In addition, for the long-term loans payable at variable interest rates subject to the special treatment ofinterest rate swap (refer to (6) 2. below), the fair value is measured by discounting the total sum of the principal and interest
treated together with the said interest rate swap as one at the interest rate that is applied when the similar loan is obtained
and that is reasonably estimated.
(5) Investment corporation bondFair value is based on market value.
(6) Derivative transaction
1. Those to which hedge accounting is not applied
Not applicable.
2. Those to which hedge accounting is applied
Method of hedge
accounting

Type of derivative transactions
and other matters

Special treatment of Interest rate swap transaction
interest rate swap
Fixed payment/variable receipt

Major items
hedgedContract amount and otheramounts
Longer than
one year

Fair value

Long-term loans
payable21,411,430（Note）

20,187,606

Method ofcalculation ofsaid market
value-(Note) Those that are subject to special treatment of interest rate swap are treated together with the current portion of
long-term loans payable and the long-term loans payable to be hedged as one, and thus their fair value is presented
together with the fair value of (Note 1) (3) Current portion of long-term loans payable and (4) Long-term loans payable
in “Notes on financial instruments 2.Matters relating to fair values of financial instruments, among other matters” .

(Note 2) Scheduled redemption amounts of monetary receivables after the closing date (December 31, 2019)(Unit: thousand yen)
Longer than one Longer than two
Longer than Longer than fourLonger than five
Within one year year, within two
years, within
three years, years, within five
years
years
three years
within four years
years(1) Cash and deposits

2,474,056

-

-

-

-

-

(2) Operating accounts
receivable

268,927

-

-

-

-

-

2,742,983

-

-

-

-

-

Total

In addition, profits and losses from the renewable energy power generation facilities, etc. for the fiscal period ended
June 30, 2019 (the 4th period) and the fiscal period ended December 31, 2019 (the 5th period) are as stated in the“Notes to statement of income” above.

Notes on Restriction for Asset Management
Not applicable.

Notes on Related Party Transaction
For prior period (from January 1, 2019 to June 30, 2019)(Note 3) Scheduled redemption amount of loans payables after the closing date (December 31, 2019)(Unit: thousand yen)

Attribute

Name

Address

Longer than one Longer than two
Longer thanLonger than fourLonger than five
Within one year year, within two
years, within
three years,
years, within five
years
years
three years
within four years
years(3) Current portion of long-termloans payable

1,512,196

-

-

-

-

-

-

5,836,435

1,860,238

1,292,889

1,254,936

15,116,310(4) Long-term loans payable(5) Investment corporation bond
Total

-

-

-

-

1,100,000-

1,512,196

5,836,435

1,860,238

1,292,889

2,354,936

15,116,310

Notes on Investment and Rental Property
CSIF has renewable energy power generation facilities, etc. The book value change during the period and fairvalue at the end of the period are as shown below.

Interested
Party of Univergy 01
Asset G.K.
Manager

50F Shinjuku
Mitsui Bldg.,
Nishi-shinjuku 21-1, Shinjuku-ku,
Tokyo JAPAN

Hippo Aza
Interested CLEAN
Higashiyama
Party of ENERGIES
8-1, MarumoriAsset SOLUTIONS
machi, Igu-gun,Manager G.K.
Miyagi, JAPANInterested
Canadian
Party of
Solar O&M
Asset
Japan K.K.
Manager

50F Shinjuku
Mitsui Bldg.,
Nishi-shinjuku 21-1, Shinjuku-ku,
Tokyo JAPAN

Capital(in JPY
thousand)Business

Development,
Acquisition,
Construction
0 and Operationof Renewable
Energy Power
Plant
Development,
Acquisition,
Construction
100 and Operationof Renewable
Energy Power
Plant
0

Transaction

Transaction
Amount(in JPY
thousand)(Note 1)
(Note 2)

Account

EndingBalance(in JPY
thousand)(Note 1)-

Purchase of Acquisition of
Not
Solar Power Solar Powerapplicable
Plant
Plant

470,000---

Purchase of Acquisition of
Not
Solar Power Solar Powerapplicable
Plant
Plant

850,000---

Outsourcing
Notof Operation
applicableandMaintenance

Payment of
O&M Fee

144,616

Accounts
Payable26,344

Transaction

Transaction
Amount(in JPY
thousand)(Note 1)
(Note 2)

Account

EndingBalance(in JPY
thousand)(Note 1)4,569,000--

146,305

Accounts
Payable32,988Relationship
Number ofUnits Hold Concurrent(Held) Position of Business
Relationship
Executive

Operation and
Maintenance(Note 1) The amounts exclude consumption taxes.

(Unit: thousand yen)

(Note 2) The condition of transactions are referring to market prices etc.
Fiscal period ended

Fiscal period ended

June 30, 2019

December 31, 2019

For current period (from July 1, 2019 to December 31, 2019)

Book value (Note 2)
Attribute

Beginning balance
Change during the period (Note 3)
Ending balance
Fair value at the end of the period (Note 4)(Note 1)42,077,910

42,676,695

598,784

3,797,111

42,676,695

46,473,806

50,026,000

51,498,500

The real estate that CSIF holds is real estate to be provided for the use of renewable energy power generation facilities,
and thus with respect to the book value and the fair value, the amount of the renewable energy power generation facilities
and real estate are stated together as one.

Name

Address

Business

Relationship
Number ofUnits Hold Concurrent(Held) Position of Business
Relationship
Executive

Development,
Acquisition,
Construction
100 and Operationof Renewable
Energy Power
Plant

-

Purchase of Acquisition of
Not
Solar Power Solar Powerapplicable
Plant
Plant

50F Shinjuku
Mitsui Bldg.,
0 Operation andNishi-shinjuku 2(Note 3) Maintenance
1-1, Shinjuku-ku,
Tokyo JAPAN-Outsourcing
Notof Operation
applicableandMaintenance

50F Shinjuku
Interested LOHAS
Mitsui Bldg.,
Party of CLEAN
Nishi-shinjuku 2Asset ENERGIES
1-1, Shinjuku-ku,
Manager WORLD K.K.
Tokyo JAPANInterested
Canadian
Party of
Solar O&M
Asset
Japan K.K.
Manager

Capital(in JPY
thousand)

Payment of
O&M Fee(Note 2)The book value is the amount at acquisition cost less the accumulated depreciation.

(Note 1) The amounts exclude consumption taxes.

(Note 3)The change during the period ended June 30, 2019 primarily consisted of the increase due to acquisition of two(Note 2) The condition of transactions are referring to market prices etc.

photovoltaic power generation facilities (1,357,292 thousand yen), and the decrease due to depreciation expenses(Note 3) Capital amount was increased to 100,000 thousand yen on January 21, 2020.

(813,047 thousand yen). And the change during the period ended December 31, 2019 primarily consisted of the increase
due to acquisition of one photovoltaic power generation facility (4,629,532 thousand yen), and the decrease due todepreciation expenses (839,638 thousand yen).
(Note 4)

The fair value is the total sum of the intermediate values according to Article 41, paragraph 1 of the CSIF's Articles ofIncorporation on the basis of the appraised value in the range stated in the valuation report with the date of the value
opinion on June 30, 2019 and December 31, 2019, which was obtained from PricewaterhouseCoopers Sustainability LLC
or Ernst & Young Transaction Advisory Services Co., Ltd..

Notes on Per Unit Information

Statement of Cash Distribution

Prior fiscal period
From January 1,2019

Current fiscal period
From July 1, 2019

to June 30, 2019
Net assets per unit
Net income per unit

95,996 yen
3,072 yen

Net income per unit is calculated by dividing net income by theaverage number of investment units during the period.
With respect to diluted profit per unit for the period, there are no dilutive
investment units, and thus the statement is omitted.

Fiscal Period under Review(From January 1, 2019
to June 30, 2019)(From July 1, 2019
to December 31, 2019)
Unit: Yen

December 31, 2019
Net assets per unit
Net income per unit

94,656 yen
2,309 yen

Net income per unit is calculated by dividing net income by theaverage number of investment units during the period.
With respect to diluted profit per unit for the period, there are no
dilutive investment units, and thus the statement is omitted.

(Note) The basis of calculation of net income (net loss) per unit is as follows.
Prior fiscal period
From January 1, 2019
to July 31, 2019
Net income (Net loss) (Thousand yen)

Current fiscal period
From July 1, 2019
December 31, 2019

710,419534,005--

Net income (Net loss) attributable to Common unit holders (Thousand yen)

710,419534,005

Average number of investment units during the period (Units)

231,190

231,190

Amount not attributable to common unit holders (Thousand yen)

I Unappropriated retained earnings (accumulated
deficit)
II Distributions in excess of retained earnings
Deduction from unitholders’ capital
III Cash distributions(Cash distributions per unit)
Profit distributions(Profit distributions per unit)
Distributions in excess of retained earnings(Distributions in excess of retained earnings)
IV. Retained earnings (deficit) carried forward

Calculation method for cash distributions

Notes on Subsequent Event after the Balance Sheet Date
For the 4th fiscal period (From January 1, 2019 to June 30, 2019)
Not applicable.

For the 5th fiscal period (From July 1, 2019 to December 31, 2019)
Not applicable.

Fiscal Period under Review

710,506,353

534,065,162

133,396,630

309,794,600

843,843,500(3,650)710,446,870(3,073)
133,396,630

843,843,500(3,650)534,048,900(2,310)309,794,600(577)
59,483(1,340)16,262

In accordance with Articles 47,
Paragraph 1 of Canadian Solar
Infrastructure Fund, Inc. (“CSIF’) s Articles
of Incorporation, the amount of cash
distributions shall be the amount of profit inexcess of an amount equivalent to 90% of
distributable profits, as stipulated in Article
67-15 of the Act on Special Measures
Concerning Taxation. Based on this policy,
CSIF decided to make distributions of

In accordance with Articles 47,
Paragraph 1 of Canadian Solar
Infrastructure Fund, Inc. (“CSIF’) s Articles
of Incorporation, the amount of cash
distributions shall be the amount of profit inexcess of an amount equivalent to 90% of
distributable profits, as stipulated in Article
67-15 of the Act on Special Measures
Concerning Taxation. Based on this policy,
CSIF decided to make distributions of¥710,506,353 which is the entire amountequivalent to the unappropriated retained
earnings for the fiscal period under reviewof ¥710,446,870 excluding fractions of the
distribution per unit that are less than ¥1.
CSIF distributes cash in excess ofretained earnings every fiscal period basedon the cash distribution policy prescribed in
Article 47, Paragraph 2 of CSIF’s Articles
of Incorporation. Based on this policy,
CSIF decided to make cash distributions inexcess of earnings (return of capital
categorized as a distribution of the
reduction in capital for Japanese tax¥534,065,162 which is the entire amountequivalent to the unappropriated retained
earnings for the fiscal period under reviewof ¥534,048,900 excluding fractions of the
distribution per unit that are less than ¥1.
CSIF distributes cash in excess ofretained earnings every fiscal period basedon the cash distribution policy prescribed in
Article 47, Paragraph 2 of CSIF’s Articles
of Incorporation. Based on this policy,
CSIF decided to make cash distributions inexcess of earnings (return of capital
categorized as a distribution of the
reduction in capital for Japanese tax

purposes) in the amount of ¥133,396,630
which is equivalent to 16.4% of the amountof depreciation expenses recorded for the
fiscal period under review of ¥813,434,738.
Accordingly, the distribution per unit is¥3,650.

purposes) in the amount of ¥309,794,600
which is equivalent to 36.9% of the amountof depreciation expenses recorded for the
fiscal period under review of ¥840,031,795.
Accordingly, the distribution per unit is¥3,650.

(Note) Distributions in excess of retained earnings per unit will generally be based on the cash distribution policy prescribed in
CSIF’s Articles of Incorporation and the Asset Manager’s asset management guideline.
CSIF intends to make cash distributions of NCF within the FCF generated from the renewable energy power generation
facilities. The amount available for distribution shall be calculated by multiplying NCF by the payout ratio.
Further, CSIF intends to make distributions in excess of retained earnings for each fiscal period in order to realize suchpolicy.
CSIF’s forecasts (including revised forecasts) for each fiscal period are based on the assumption of the Forecast Power
Generation (P50) provided in the independent technical report which is used as a basis for calculating rents for renewableenergy power generation facilities and if actual NCF calculated based on actual power generation during the applicablefiscal period exceeds forecast NCF, CSIF’s policy is to set “forecast NCF multiplied by the payout ratio” as the upper limit of
the amount of cash distributions for the applicable fiscal period. .
On the other hand, if actual NCF is less than forecast NCF, CSIF’s policy is to set “actual NCF multiplied by the payout
ratio” as the amount of cash distributions for the applicable fiscal period.
Based on this policy, CSIF decided to make distributions for the previous fiscal period of ¥843,843,500 which is equivalent
to 48.0% of forecast NCF amount for the fiscal period under review of ¥1,758,007,291. Of this, ¥133,396,630 which is theamount less of distributions of profit of ¥710,446,870 is distributions in excess of retained earnings.
Based on this policy, CSIF decided to make distributions for the current fiscal period of ¥843,843,500 which isequivalent to 82.0% of forecast NCF amount for the fiscal period under review of ¥1,029,345,000. Of this, ¥309,794,600
which is the amount less of distributions of profit of ¥534,048,900 is distributions in excess of retained earnings.

Statement of Cash Flow（unit: thousand yen）
th

4 period

5th period(From January 1, 2019

(From July 1, 2019

to June 30, 2019)

to December 31, 2019)

Cash flows from operating activities
Income (Loss) before income taxes

711,290534,868

Depreciation cost

813,434

840,031

Investment corporation bond issuance expenses

-

263

(15)

(13)

Interest expenses

106,345

108,461

Decrease (Increase) in operating accounts receivable(217,843)

157,829

Decrease (Increase) in consumption taxes receivable

793,148(329,815)

Decrease (Increase) in consumption taxes payable

49,904(41,587)

Decrease (Increase) in prepaid expenses

35,909(85,718)

Decrease (Increase) in long-term prepaid expenses

17,075(8,695)

Increase (Decrease) in operating accounts payable

1,053

6,644

Increase (Decrease) in accounts payable - other

26,686(15,532)

Increase (Decrease) in accrued expenses

39,839(11,331)

Other, net(3,024)(833)

Sub-total

2,373,805

1,154,572

Interest income

Interest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities

15

13(106,961)(107,769)

(859)

(870)

2,265,998

1,045,945(1,387,663)(4,396,022)(18,294)(240,727)

Cash flows from investing activities
Purchases of property and equipment
Purchases of intangible fixed assets
Payment of guarantee deposits
Net cash provided by (used in) investing activities-(16,769)(1,405,958)(4,653,519)

Cash flows from financing activities
Proceeds from long-term loans payable

700,000

4,800,000

Repayment of long-term loans payable(1,483,938)(1,440,151)

Proceeds from issuance of investment corporation bond-

1,100,000

Payments for investment corporation bond issuance expenses-(8,800)(412,211)(710,446)

Dividends paid
Surplus earning distribution paid
Net cash provided by (used in) financing activities(420,072)(133,396)(1,616,222)

3,607,205

Net increase (decrease) in cash and cash equivalents(756,182)(368)

Cash and cash equivalents at the beginning of the fiscal period

3,222,807

2,466,624*1 2,466,624*1 2,466,256

Cash and cash equivalents at the end of the fiscal period

Summary of Significant Accounting Policies

Scope of funds in statementof cash flows

From January 1, 2019

From July 1, 2019

To June 30, 2019

To December 31, 2019

Funds (cash and cash equivalents) inFunds (cash and cash equivalents) instatement of cash flows consist of cash on hand,statement of cash flows consist of cash on hand,demand deposits and short-term investments

demand deposits and short-term investmentswith a maturity of three months or less at the datewith a maturity of three months or less at the dateof acquisition that can readily be converted intoof acquisition that can readily be converted into

cash and that are subject to insignificant risks ofcash and that are subject to insignificant risks ofchanges in value.

changes in value.

Notes to Statement of Cash Flows*1 Relationship between the ending balance of cash and cash equivalents and the amounts on the balance sheet
From January 1, 2019
To June 30, 2019
*1 Relationship between the ending balance of cash and cash
equivalents and the amounts on the balance sheet(as of June 30, 2019)(unit: thousand yen)
Cash and deposits
2,466,624
Term deposits over three months
Cash and cash equivalents
2,466,624

From July 1, 2019
To December 31, 2019
*1 Relationship between the ending balance of cash and cash
equivalents and the amounts on the balance sheet(as of December 31, 2019)(unit: thousand yen)
Cash and deposits
2,474,056
Term deposits over three months(7,800)Cash and cash equivalents
2,466,256